Modi left for Fiji's capital Suva on a special Indian Air Force plane. He will hold talks with his Fijian counterpart Frank Bainimarama tomorrow.
Modi is the first Indian premier to visit the Pacific country after Indira Gandhi who had come here in 1981.
Out of the 849,000 population in Fiji, 37 per cent people are of Indian origin. Many Indians arrived in Fiji as indentured labour in the 19th century.
The two countries also decided to conclude a long-pending Free Trade pact by the end of next year and an "early closure" of the civilian nuclear deal that will facilitate uranium imports to India.
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In a joint statement issued at the end of Modi's visit, the two countries committed themselves to working together to combat terrorism and transnational crimes.
He also addressed the Australian Parliament.
Modi also assured a visa on arrival facility for Australian tourists and announced a two-month deadline for the long-pending merger of OCI and PIO status to woo the Indian diaspora from whom he sought support for his ambitious Clean India campaign.
Prior to arriving in Australia, he attended the ASEAN-India summit and the East Asia Summit in Myanmar.