"India is privileged to be considered as Mongolia's spiritual neighbour. PM @narendramodi to PM Saikhanbileg at Delegation level talks," tweeted External Affairs Ministry spokesperson Vikas Swarup.

Modi, the first Indian Prime Minister to visit Mongolia, was earlier accorded a ceremonial welcome at the State Palace and later sat down for delegation talks with Saikhanbileg.

Modi, accompanied by the Mongolian leader, took the salute by the red and blue liveried armed forces.

The State Palace or Government House, built in the 1950s, is where the Mongolian president, parliament speaker and prime minister work from.

It also houses the parliament hall. The State Palace also houses a statue of Genghis Khan.

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