The Prime Minister's two-day visit is taking place in the backdrop of celebrations of the 25th year of democracy and 60 years of diplomatic relations between India and Mongolia.
On the second leg of his three-nation tour, PM Modi will meet Mongolian President Tsakhiagiin Elbegdorj to strengthen bilateral cooperation in diverse areas like shipping and logistics, transport, highways and electric power development in new energy industries.
PM Modi's visit, the first-ever to this country by an Indian Prime Minister, will also see the two sides inking a Double Taxation Avoidance Convention.
A rare honour is being bestowed on PM Modi as the Mongolian Parliament will for the first time allow a foreign leader to address the members on Sunday, a holiday.
After his address, PM Modi will meet President Elbegdorj, who will also host a banquet in his honour.
The visit will also see the laying of foundation stone for the Information Technology Centre.
The Prime Minister would tomorrow have the first stop at the Gandan Monastery where he will gift a Bodhi Tree sapling to the Chief Abbott.
The two sides are expected to sign an agreement on cooperation in the field of application of nuclear technology for cancer cure in the National Cancer Centre of Mongolia.
India is gifting the centre a Bhabhatron, the indigenous machine developed by Bhabha Atomic Research Centre successful in cancer treatment.
Another agreement will be signed for cooperation in solar and wind energy. The two sides are also expected to step up cooperation between the two National Security Councils, cyber security, border management, culture, air services, animal health and diary, besides training of diplomats.
India has a strong linkage of Buddhism and democracy with Mongolia and was the first country outside the Soviet bloc to establish diplomatic relations with it.
India feels that there is excellent potential for cooperation with Mongolia in the minerals sector. Mongolia is mineral-rich country in coking coal, copper, rare earths and uranium.
India already has a civil nuclear agreement with Mongolia which provides for uranium exports to the country once the domestic laws here permit prospecting and mining.