The two leaders have discussed bilateral and regional issues, as well as the investment climate and trade deficit issues.
The sides also focused on border security and joint efforts to counter terrorism.
The NDTV channel reported that at the meeting Modi raised the question of China's plans to invest $46 billion in the economic corridor to Pakistan that is expected to go through the Kashmir territories disputed by Islamabad and New Delhi.
Modi arrived in China on Thursday. Following the talks with Xi in his home Shaanxi province, Modi will head to Beijing to meet with Chinese Premier Li Keqiang.
During Modi's visit, India and China are expected to sign a number of cooperation agreements.