Modi made the announcement during his joint press statement with State Counsellor Aung San Suu Kyi after the two leaders held wide-ranging talks here.
"I am pleased to announce that we have decided to grant gratis (no-cost) visa to all the citizens of Myanmar who want to visit India," Modi said.
He also announced that India has decided to release 40 Myanmarese citizens, currently lodged in various jails in India.
"We hope that they will soon be able to meet their families in Myanmar," the prime minister said.
Modi also asserted that India stands by Myanmar amid the challenges the country is facing.
"I am confident that in future we will work together to create a strong and close partnership for mutual benefits," Modi said.
Earlier, during the delegation-level talks, Modi said, "We would like to contribute to Myanmar's development efforts as part of our 'Sabka saath sabka vikaas' initiative."
He said deepening the relationship with Myanmar was a priority for India, as a neighbour and also in the context of the 'Act East Policy'.