Modi, who is here on a brief visit, today held talks with Costa to discuss ways to further intensify bilateral relations.
Costa, 55, is of Indian-origin and his election in 2015 as Prime Minister has opened avenues for energising bilateral relations between the two nations.
"Prime Minister Costa represents the best of the Indian diaspora across the world," Modi said during a joint address to the media with Costa.
Modi, during the joint address to the media, also said apart from Costa's Indian connection, football can further connect the people in the two countries.
"Portuguese passion for football runs deep, PM Costa himself is a big fan. This could form another league to further connect our societies," Modi said.