"Portugal has emerged as one of the most vibrant European ecosystems for entrepreneurship", Modi said during a joint address to the media with Costa, who traces his origin to Goa, after bilateral discussions.
A host of strategic issues are expected to be discussed during the bilateral talks between the two leaders of the world's largest democracies, including defence cooperation, boosting economic ties, discussions on the civil nuclear deal, cooperation on combating terrorism, security cooperation in the Indo-Pacific region and India's concerns over the H-1B work visa.
The agreements signed Saturday included cooperation in outer space, double taxation avoidance, nano technology, improving cultural ties, youth and sports, higher education, scientific research, and setting up of a Portugal-India Business Hub and an Indian Chamber of Commerce here.
"President Trump realises that India is a force for good and that will come through in the visit on Monday", a senior official said.
Ahead of his U.S. visit, Modi said he looked forward to the opportunity of having an in-depth exchange of views.
Earlier in the day, in a break from protocol, Modi was received at the airport here by Portuguese Foreign Minister Augusto Santos Silva.
Modi also stressed on people-to-people ties between the two countries saying Costa's passion for football would help deepen bilateral ties.
Prime Minister Narendra Modi on Sunday offered his prayers and greetings to his countrymen on the occasion of Eid and the Lord Jagannath Rath Yatra and urged citizens to get inspired by these festivals, spread happiness and take the country forward.
Costa thanked the expatriate Indian community's contribution to Portugal's economy and society. He is scheduled to meet US President Donald Trump and members of the Indian community during his tour.