Speaking at a gathering of CEOs on the sidelines of the annual Asia-Pacific Economic Cooperation (APEC) summit at Da Nang in Vietnam, President Trump said that countries outside of the grouping were also making "great strides in this new chapter for the Indo-Pacific".
He pointed out that India was celebrating the 70th anniversary of its independence and highlighted that the country was a sovereign democracy with a population of 1.3 billion as well as the largest democracy in the world.
"Since India opened its economy, it has achieved astounding growth and a new world of opportunities for its expanding middle class," President Trump said.
"And Prime Minister (Narendra) Modi has been working to bring that vast country and all of its people as one. And he has been working at it very successfully indeed," the US President said.
PM Modi is leaving for the Philippines on Sunday to attend the India-ASEAN and East Asia summits. President Trump is also scheduled to attend the East Asia Summit, a key meeting between ASEAN and eight of its partners.
The US president also used his speech at the APEC business meet to promote his vision for a free and open Indo-Pacific region.
The use of the term Indo-Pacific by President Trump has led to speculation that it may have something to do with Washington preparing the ground for a revival of the so-called Quadrilateral strategic alliance between the US, Japan, Australia and India to counter China's rise.
China has already reacted cautiously over a proposal by the Trump administration for a working-level quadrilateral meeting with India, Japan and Australia, saying Beijing hopes that it would not target or damage a "third party's interest".
In his address, President Trump also praised countries like Indonesia, Thailand, the Philippines, Malaysia and Japan, which also briefly touched on the bloody history of the Vietnam war, in which Da Nang was a key battlefield.
"Today we are no longer enemies, we are friends," President Trump said.