He said businessmen of both the countries can work together in space, cyber security, health and infrastructure, stressing that India-Kazakhstan partnership is a "win-win situation".
Modi, who is on a visit to Central Asia and Russia, made these comments while addressing a round-table interaction with CEOs and business leaders of Kazakhstan and India.
"I believe the sovereign wealth fund and your companies can invest in these sector. They have scope for manufacturing sector which is a big requirement for India," he said.
The Prime Minister also invited Kazakh businessmen to participate in 'Make In India' initiatives. He invited them to participate in manufacturing sector, especially railways, and Smart City projects.
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"We invite you for Make In India. You have raw material, resources and India have youth force. You can participate," he said, adding that the initiative matches "perfectly with President N Nazarbayev's Nurly Zhol programme".
"We have taken up a mission of 100 smart cities. This will interest those working on urban areas and infrastructure," the he said, adding that "the more our cooperation increases, the more it will be beneficial for our nations".
Modi said, "As you have changed Astana in the last 20 years, you can help in developing smart cities."
India has opened up FDI up to to 100 per cent in railways sector and investors can participate in modernising the network, which is second largest in the world.
"We are made for each other", the Prime Minister said, stressing that while Kazakhstan has natural resources in abundance, India is big market with huge demand.
He said Kazakhstan could also benefit from India's strength in the IT sector.
Poor connectivity, he said, is the biggest barrier to deepening of economic engagement between the two countries, and called for improving it.
Modi and Prime Minister of Kazakhstan, Karim Massimov, also witnessed the commencement of drilling at the Satpayev Exploration Block, where ONGC Videsh Ltd has a significant stake.