He said that Samsung's investment of about Rs 5000 crore towards establishing the mobile facility is significant in the context of the relationship between India and Korea, and it would further strengthen the handset maker's business links with India.
The facility will also double Samsung's capacity in India from 68 million units per year to 120 million units annually.
President Moon Jae-in and Samsung Electronics Vice Chairman Lee Jae-yong took part in a ceremony celebrating the expansion of a smartphone factory in Noida, south of the Indian capital of New Delhi on Monday.
While Modi's flagship "Make in India" campaign is still a long way from delivering on ambitious job promises, the programme has had some success with the phased manufacturing of mobile devices and components.
Prabhu and his South Korean counterpart Kim Hyun-Chong signed the joint statement on the Early Harvest package-issues where a breakthrough was achieved-in the India-Korea Comprehensive Economic Partnership Agreement (CEPA) upgradation, said PTI quoting an official statement.
"It's a move that'll obviously play well for Samsung but it also gives a much-needed shot in the arm to India's mobile manufacturing ecosystem as it will push rivals to consider expanding local production", said Navkendar Singh, an associate research director at International Data Corporation.
Right now, Samsung manufacturers 67 million smartphones in India. Around 300 government officials of both countries and top brass of Samsung attended the event. "At this new plant, 1,000 more people will get jobs", Modi said.
Orrin Hatch may have given a clue about Trump's Supreme Court pick
Democrats and pro-abortion groups stepped up their rhetoric on Sunday over the danger of Trump's second pick. Mitch McConnell is trying to talk President Trump out of nominating Judge Brett M.
"India is a country that has no sensitive issues with us historically or geopolitically, so has little risk of its economic cooperation wavering due to external factors".
The new factory will almost double Samsung's output, thus helping compete against Xiaomi and possibly win back the top spot. The smartphone market remained flat year-on-year, according to Counterpoint.
While Xiaomi shipped out almost 8.2 million smartphones in India, giving it about 27 percent of the market share, Samsung sold almost 7.3 million units and captured around 25 percent of the market, according to market researchers.
The Noida factory, which was set up in 1996, is one of the first global electronics manufacturing facilities set up in India.
Moon described Samsung's Noida plant as a "real model of co-prosperity and cooperation" between the two countries, which will contribute to development of the two economies. Smartphones made in India are expected to account for almost one third of the entire production in the world.