The Modi-Hasina talks today followed days of quiet negotiations by New Delhi with the Bengal government to try and ensure that the Bangladesh Prime Minister's visit goes smoothly and she can carry back at least optimism on the Teesta agreement. India has opened more Indian Visa Application Centres in Bangladesh. Stressing that the deal was "important" for India-Bangladesh ties, Modi assured India's commitment to the issue.

Both will also have talks on crucial issues including defence, security, trade and energy.

Modi set aside protocol to go to the airport, travelling through the normal traffic without any route restrictions, official sources said. Announcing an additional line of credit of United States dollars 500 million to Bangladesh for military supplies, Modi said it will be driven by the requirement of that country.

For the first time this year, Bangladesh nationally observed Mar 25 as "Genocide Day" commemorating those killed by the Pakistani occupation forces on that night in 1971.

"Her government's "zero-tolerance" policy towards terrorism is an inspiration for all of us".

"The thought whose priority is not humanity, but extremism and terrorism", PM Modi said while speaking at an event to honour martyrs of the 1971 Bangladesh liberation war.

Modi said India is a victim of the "thought" that encourages terrorism.

"India is our most important neighbor and one of our key development partner. This mentality obstructs development in whole region", Modi said.

'The entire South Asia region will be a beneficiary of our friendly relations and cooperation'.

Modi jointly launched with Sheikh Hasina train and bus services between Kolkata and Khulna in Bangladesh, and restored the once defunct Radhikapur-Biral rail link between the countries.

They flagged off the Maitree Express, which will run between Kolkata and Khulna, while restoring the defunct Radhikapur-Khulna passenger train service, which will resume in July after almost 70 years.

Modi said that India always stood for the prosperity of Bangladesh and fruits of cooperation must reach to the people of the two countries.

On Sunday morning, Sheikh Hasina will visit Ajmer Sharif, the "dargah" of Khwaja Moinuddin Chishti, and offer prayers before returning to New Delhi in the afternoon.