Both Modi and Abe are here to take part in the G20 Summit starting tomorrow.
The scope for further strengthening economic ties between the two countries was discussed by the two leaders at the dinner hosted by Abe at the hotel he is staying in this Australian city.
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"Happy to meet you once again," Modi told Abe during their dinner meeting.
Warmth, mutual admiration and convergence of views had marked the meeting between Modi and Abe during the Prime Minister's recent visit to Japan.
Abe had also hosted a dinner for Modi at the Imperial Guest House in Kyoto during his five-day visit to Japan.
During the Prime Minister's visit, Japan had promised to invest USD 35 billion over five years in infrastructure projects in India, including building of smart cities and cleanup of the Ganga river.