"We share your concerns on the extremist violence in Rakhine province and especially the death of security personnel and the loss of innocent lives".
Modi spoke after talks with State Counsellor Aung San Suu Kyi during a visit aimed at expanding commercial ties as part of its "Act East" policy and push back against Chinese influence.
Prime Minister Modi also announced gratis visas for people of Myanmar and promised to release the 40 Myanmarese citizens, lodged in Indian jails.
The Myanmar's president Htin Kyaw and Suu Kyi had visited India previous year. Myanmar welcomed India's offer of assistance under the Rakhine State Development Programme and the two sides agreed to finalize the implementation modalities within the next few months, the statement added.
Listof MoUs/Agreements signed during State visit of Prime Minister to Myanmar.More news: Powerful Explosion Detected In North Korea In Possible Nuclear Weapons Test
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"The prime minister and leaders will discuss more importantly how India can play a role what kind of contribution India can make", he said.
For several years now, India has steered clear of supporting the West's vocal criticism of human rights abuses in Myanmar - both under Modi and earlier, when the Congress was in power, and equally when the military junta ruled in the neighbouring nation and under Suu Kyi. Speaking on private broadcaster ATV, Çavuşoğlu confirmed that the first lady will have "close contact" with Rohingya Muslims who had escaped from Myanmar. But India's familiar Achilles heel - a delay in delivering on promises - has hurt its efforts in Myanmar too.
Prime Minister Narendra Modi today addressed the Indian diaspora in Myanmar's Yangon city.
More than 123,000 Rohingyas have fled Myanmar for Bangladesh in two weeks.
The first such MoU between the two neighbours assumes significance for the northeastern region of the country. Wherever there are concerns, we highlight them. He noted that peace and stability in Myanmar are of the highest priority to India and reiterated India's continued support to Myanmar in consolidating democratic institutions in the country and for the emergence of a democratic Federal Republic, the statement said.