Prime Minister Narendra Modi met his Malaysian counterpart Najib Razak ahead of delegation-level talks here on Saturday.
The two countries have inked seven pacts following the delegation-level talks including an air services agreement.
Earlier in the day, Razak was accorded a ceremonial welcome at the Rashtrapati Bhavan in New Delhi.
Thereafter he called on President Pranab Mukherjee and Vice President Hamid Ansari. External Affairs Minister Sushma Swaraj, too, called on the visiting dignitary.
Razak arrived in Chennai on Thursday on a six-day visit to India and reached New Delhi on Friday evening.
He will also visit Jaipur on Sunday where he will meet Rajasthan Chief Minister Vasundhara Raje Scindia.
The is the Malaysian Prime Minister's third official visit to India.