Modi met Finance Minister Arun Jaitley, RBI Governor Urjit Patel and other key officials involved in economic policymaking, PTI reported quoting sources. The deliberations will continue on Saturday.
Issues facing the economy like depreciation in the rupee and rising fuel prices are being discussed in the meeting.
The meeting comes against the backdrop of the Indian currency falling around 6 per cent since August to touch an all-time low of 72 level this week. Petrol and diesel prices have also touched record highs.
The government has been under pressure from the opposition to stem the rupee fall and cut taxes to check surging fuel prices.
The Finance Ministry has ruled out any cut in taxes to ease the burden on consumers, saying it does not have the bandwidth to lose any revenue without developmental spending being cut. The government can ill-afford this in an election year.
While Revenue Secretary Hasmukh Adhia and Economic Affairs Secretary Subhash Chandra Garg accompanied Jaitley to the Friday meeting, Expenditure Secretary Ajay Narayan Jha will join the Saturday meeting during which the Prime Minister will also review the budget, news agency IANS reported.
The high-level meeting on Saturday has been called to analyse the economic situation precipitated by record depreciation in rupee and unprecedented rise in fuel prices.
Modi is also likely to discuss issues related to fiscal discipline with the policymakers. Considering general elections next summer, some economists have expressed fear against populist measures and hope the government does not cut tax on petrol.
(With inputs from gencies)