Earlier on Thursday, Modi was accorded a ceremonial welcome after his arrival in Maputo on the first leg of his four-nation Africa tour, .
"A Maputo morning, an African dawn!"
The ties between the two countries that form one-third of the world's population will also help India acquire a permanent seat in the UN Security Council, owing to South Africa's repeated emphasis on the need to reform the Council.
The visit will focus on strengthening cooperation with these nations in areas of trade and investment, hydrocarbons, maritime security, agriculture and food. "In fact, Mozambique has already been one of the gateways for Indian investments into Africa", he said.
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Assocham on Wednesday said Prime Minister Narendra Modi with the Cabinet reshuffle has conveyed a strong resolve to put a premium on performance of his colleagues to improve quality of governance.
On Friday, Modi will hold talks with South African President Jacob Zuma in Pretoria and later address an India-South Africa business meeting. While India generally has a shortfall of pulses leading to price rise, Mozambique grows the commodity without much consumption locally, officials said, adding the agreement will be a "win-win" for the two countries.
This puts South Africa in a hard position, given that China is against India's membership, as one of the criteria for belonging to NSG is that members must sign the nuclear Non-Proliferation Treaty (NPT).
There are around 20,000 people of Indian origin in Mozambique. Mozambique and India are no exceptions.
Modi said the networks of terrorism are interlinked with other crimes, including drug trafficking.
"In an effort to boost our economic ties, I will speak at the India-South Africa business meet", he said.
"India and Mozambique are connected by the Indian Ocean".
Shah, who is also an MLA from Gujarat, last evening took part in a felicitating ceremony of newly inducted Union Ministes from the state - Mansukh Mandaviya, Jaswantsinh Bhabhor and Parshottam Rupala.