"The meeting is an innovative diplomacy," Singh said at a function here to mark the birth anniversary of former Prime Minister Atal Bihari Vajpayee.
Singh's remarks came a day after Modi's visit to Pakistan, the first by an Indian Prime Minister in more than a decade.
Modi, while returning from his visit to Russia and Afghanistan, made a surprise stop at Lahore last evening.
The Home Minister maintained that the "visit was in line with the vision of Vajapyee on India-Pakistan relations".
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Former Prime Minister Atal Bihari Vajpayee had travelled to Lahore from New Delhi on the inaugural run of a bus route in 1999.
Modi and Sharif had met briefly on the sidelines of the Paris Climate Change Summit recently. The Paris meeting was the first between the two leaders after July when they had met in the Russian city of Ufa and had agreed that their National Security Advisers would meet.
The Home Minister opined that after Atal Bihari Vajpayee,
it was Prime Minister Modi who has raised the dignity of India infront of the world.
"In independent India, after Atal Bihari Vajpayeeji, if there is someone who has made the country proud and raised its dignity in front of the world, it is Narendra Modi," he said.
Singh said that it was mainly due to Modi's long stretching efforts that the influence and image of the country has vastly improved.
He added that in Independent India's resurgence, former Prime Minister Atal Behari Vajpayee's contribution has also been of prime importance.
On being asked about the graft allegations against Union Finance Minister Arun Jaitley, Singh said that they were all baseless and his integrity could not be doubted.