"It is not in our interest to allow use of Pakistan's territory for terror outside," Khan said.
The Indian government has sent Union ministers Harsimrat Kaur Badal and Hardeep Singh Puri to represent India at the event.
India slams the Pakistani prime minister for 'unwarranted reference to J&K' during pious occasion.
'Indian media taking a myopic view is selectively showing Mr Gopal Singh meeting COAS. Army Chief met all guests at the venue irrespective of identity. A peace initiative should not be subjected to propaganda'
India says it cannot accept a project that ignores its core concerns on sovereignty and territorial integrity.
The two leaders shook hands and exchanged pleasantries at the end of the media briefing which was addressed by Chinese President Xi Jinping. China is the host and chair of the SCO.
He said countries should work for promoting open and inclusive cooperation for win-win outcomes.
In his address at the Plenary session of the 18th SCO summit in Qingdao, Modi coined an acronym 'SECURE' which he explained: 'S' for security for citizens, 'E' for economic development, 'C' for connectivity in the region, 'U' for unity, 'R' for respect of sovereignty and integrity, 'E' for environment protection.
An MoU on sharing hydrological information of the Brahmaputra River by China to India and another pact on amendment of the protocol on phytosanitary requirements for exporting rice from India to China to include non-Basmati rice were signed after the Modi-Xi talks in the eastern Chinese port city.
Modi will hold several bilateral meetings with the leaders of the SCO member countries including China's Xi Jinping.
Inaugurating the Defence Expo in Thiruvidanthai in Tamil Nadu, Modi said the Defence Procurement Procedure was revised with many specific provisions for stimulating growth of the domestic defence industry.
At the border personnel meeting, China also accused the Indian side of damaging its road building equipment when a road laying party left its gear in Tuting in December last year following a protest by India.
"After the tri-junction in Doklam in the Sikkim sector, this is the most important tri-junction along the Sino-India border."
Military officials said India is also strengthening its surveillance mechanism to keep an eye on Chinese activities along the borders in the strategically sensitive Tibetan region and has even been regularly deploying choppers to carry out recce.
The visit by Gen Rawat, Ajit Doval and Vijay Gokhale was the first such high-level trip from India to Bhutan after the Doklam standoff.
Modi said India will continue its support to ASEAN for a rules-based security architecture for the region.
The prime minister's meetings with Abe and Turnbull came a day after he held "very expansive" talks with US President Donald Trump on intensifying overall security and defence cooperation, particularly in the Indo-Pacific region where China is strengthening its military build up.
Modi assured Trump that India will try to 'live up to the expectations' of the US and the world and also thanked the US President for speaking 'highly' about India during his trips.
The PM was also seen chit-chatting with Japanese Prime Minister Shinzo Abe, Russian Prime Minister Dmitry Medvedev and Malaysian Prime Minister Najib Razak at the reception for the leaders who have arrived in Manila for the 31st ASEAN summit and related meetings.
Official sources said the Army committed a 'major mistake' in 2011 on the status of the JCOs.
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