India and Israel are expected to ink several agreements in key sectors as Prime Minister Narendra Modi held talks with his Israeli counterpart Benjamin Netanyahu here on Wednesday.

The two leaders held restricted talks ahead of the delegation-level talks.

"Taking yesterday's discussions forward. PM narendramodi and PM  netanyahu meet for restricted talks in Jerusalem," External Affairs Ministry spokesperson Gopal Baglay tweeted along with pictures of the two leaders.

Earlier on Wednesday, Modi called on Israeli President Reuven Rivlin who broke protocol and welcomed the Indian leader with a hug as he alighted from the car ahead of the meeting.

"I am very grateful to the President for welcoming me so warmly," Modi told the media. "He broke protocol and came out to the alighting point to welcome me. This is a mark of respect for the people of India."

Later on Wednesday, Modi is scheduled to meet Moshe Holtzberg, whose young Jewish parents, Rabbi Gavriel and Rivka Holtzberg, were killed during the attack on the Chabad House in Mumbai in the 26/11 terror attacks.

He will also address a 4,000-strong gathering of the Indian diaspora in Israel in the evening.