Both the prime ministers anticipated that commercial exports of Australian uranium could begin soon, opening up a new avenue for Australia to support India's energy requirement.
Instead, Turnbull said he was prioritising an Asia-Pacific forum that includes China, amid concerns over access to India's market of 1.3 billion people for farm exports from Australia and opportunities for skilled Indian workers there.
While the re-instatement of Australia in the Malabar exercises, comprising of India, the USA and Japan, will have to wait for some time, Modi and Turnbull in a joint statement agreed that the bilateral maritime exercise between the two countries will be conducted next year.
In the afternoon, Modi and Turnbull travelled by a Delhi Metro train to visit the Akshardham temple in east Delhi.
On Tuesday, Turnbull will visit Mumbai where he will attend several events, including an interaction with key business leaders and an energy round-table.
"We, therefore, agree on the need for a secure and rule- based Indo-Pacific".
His predecessor Tony Abbott had visited India in September 2014 and this was followed by Prime Minister Modi's visit to Australia in November that year.
He said student exchanges are an important element of bilateral education cooperation and referred to more than 60,000 Indian students studying in the country.
"We are also aware that in this globalised world, challenges like terrorism and cyber security extend beyond the boundaries of our region", he said.
"Our work together in the strategic and security spheres continues to gain momentum", Mr Turnbull told reporters after his meeting with Mr Modi. The achievements of India are the admiration of the world.
Modi bonding with the Australian PM today also shows the evolving relationship between the two nations seeking closer ties in a number of fields.