He was received at the airport by Governor K Rosaiah and Chief Minister J Jayalalithaa, among others.
Jayalalithaa presented the Prime Minister with a bouquet on his arrival.
This is the Prime Minister's first visit to the Tamil Nadu capital since he assumed office.
Flags of AIADMK and BJP were seen in some of the places through which the Prime Minister's cavalcade passed.
Tight vigil is being maintained all over the city in view of Modi's visit with multiple layers of security having been put up on the occasion.
Besides launching the Handloom day, the Prime Minister will also present Sant Kabir awards and National Awards for handloom weavers on the occasion.
Police have sanitised the venue --Centenary Auditorium of Madras University-- and have since yesterday taken the premises under their control with traffic restrictions around the venue.
Modi's only earlier visit here was when he made a brief stopover and had a 15-minute meeting with Jayalalithaa at the airport in June last year.
The Prime Minister would also launch 'India Handloom' brand later in the day.
An exhibition showcasing master creations of the awardees is also being inaugurated on the occasion in the adjacent senate building of Madras University.
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