The two sides exchanged documents regarding the Land Boundary Agreement (LBA) that was passed unanimously by the Parliament last month in the presence of Modi and his Bangladeshi counterpart Sheikh Hasina besides West Bengal Chief Minister Mamata Banerjee.

"History is made as the Instruments of Ratification of the Land Boundary Agreement are exchanged," Modi tweeted.

The exchange of documents paves way for the operationalisation of the 1974 India-Bangladesh LBA that provides for exchange of 161 enclaves between the two countries. A total 111 border enclaves will be transferred to Bangladesh in exchange for 51 that will become part of India.

Ahead of his visit, Modi had said the Agreement marked a 'watershed moment' in India's ties with Bangladesh.

Under the agreement, India will have an advantage of 500 acres and 10,000 acres will go to Bangladesh.

The agreement settles the question of citizenship for over 50,000 people. The issue has been a major irritant in ties between the two countries which share a 4,096-km-long border, most of which is porous.

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