The two leaders shook hands and posed for photographers before settling down for delegation-level talks.
Indian delegation included National Security Advisor Ajit Doval and Foreign Secretary S Jaishankar while Sartaj Aziz, Sharif's advisor on foreign affairs and national security, was in the Pakistani delegation.
Setting the tone for the meeting, Modi and Sharif last night exchanged pleasantries and chatted briefly when they came face-to-face at a dinner hosted by Russian President Vladimir Putin for leaders of five BRICS countries and 10 SCO nations here.
The two leaders, who are here to attend the Shanghai Cooperation Organisation (SCO) Summit, are expected to discuss the status of the bilateral ties and the future direction.
Modi and Sharif were last together in Kathmandu in November last for the SAARC Summit but they did not have a bilateral meeting because of acrimony between the two countries at that time.
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