But the U.S. president said there should be no illusions about the scale of the task ahead, adding that their economic relationship "is defined by so much untapped potential".
"We have to keep working to make it easier to do business in both of our countries," said Obama.
"There are still too many barriers, hoops to jump through.
"We hear this consistently from business leaders such as you," Obama added, speaking alongside Modi.
"We have got to do better."
Speaking last week, the U.S. ambassador to New Delhi said bilateral trade was now running at around 100 billion dollars a year -- five times the level of a decade ago.
But Ambassador Richard Verma also said there was potential for the levels of bilateral trade to grow by another five times.
Before becoming prime minister, Modi spent more than a decade as chief minister of the thriving coastal state of Gujarat which won a reputation under his stewardship as India's most investor-friendly place.
"Everything we wish to do involves enterprise and investments, but even more -- innovation and imagination," said Modi.
Copyright Agence France-Presse, 2015
