During the meeting, Prime Minister Modi also highlighted his concerns for Indo-China relationships and said that the two countries must boost their cooperation, strengthen communication and coordination in worldwide affairs.
He assured that China will contribute with an additional 10 million yuan ($1.47 million USD) to the SCO Secretariat in order to facilitate its work.
India has been an observer of the SCO meeting since 2005.
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Modi today hailed India's accession as a "landmark moment in the journey of the SCO" and pledged India would play a "constructive and active role" in the organisation that also includes ex-Soviet states Kyrgyzstan, Kazakhstan Tajikistan and Uzbekistan.
Prime Minister Muhammad Nawaz Sharif Friday said Pakistan, as full member of the Shanghai Cooperation Organization (SCO), would strive further to achieve the collective objectives of the organization for regional cooperation, connectivity and economic prosperity.
"As for the economic aspects, I am sure that we must focus on combining efforts, coordination of national strategies and multilateral projects throughout the Shanghai Cooperation Organization".
Prime Minister Nawaz Sharif on Friday held a meeting with Russian President Vladimir Putin on the sidelines of SCO summit in Kazakhstan. "Want to thank all members for their support", he added.
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Chinese Foreign Ministry spokesperson Hua Chunying, briefing newspersons here on the meeting, said Xi told Modi that both sides "should address major and sensitive issues".
His remarks assume significance as they come weeks after India boycotted the high-profile Belt and Road Forum held in Beijing in which 29 world leaders took part.
The Prime Minister also strongly pitched for enhancing connectivity without impinging on sovereignty and territorial integrity. Prime Minister Modi, hence, enquired about Sharif's health and also asked about his mother and family.
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