"My vision and Bangladesh Prime Minister Sheikh Hasina's vision matched perfectly - that of development, development and development," Modi said.
Praising Hasina for her "single-minded focus" on economic development, he said, a firm foundation is being laid for Bangladesh's economic progress.
"The world rarely notices developing countries. Bangladesh has had to often face natural disasters. But nevertheless, it has done unparalleled work in many fields," the Prime Minister said in his address to Dhaka University.
The Prime Minister said that he was happy to hear this on a recent visit to China, for the fact that a developing country had achieved such a feat.
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"If Bangladesh prospers, India too would benefit," Modi said.
He said many states in India could learn from Bangladesh on several social indicators, such as infant mortality rate.
The Prime Minister said the era of expansionism in geopolitics has ended and the world now needs vikaswaad (development), not vistaarwaad (expansionism).
He also lauded the steps taken by her towards strengthening democracy and promoting peace, security and stability in the region and beyond.
He complimented Hasina for her support to innovative ideas for enhancing sub-regional cooperation and connectivity.
Modi also appreciated her commitment to the betterment of bilateral ties with India and "the many path-breaking initiatives" taken by her to provide greater depth and substance to the relationship.