"I'm the third head of the government you are listening to this week, I do not know how you are doing this," he said. "Maybe this is Prime Minister Abbott's way of shirt fronting you."
Members of Parliament erupted into laughter at the comment, and even Abbott was seen chuckling.
Highlights of Narendra Modi's speech to Australian Parliament
2.Humbled and honoured by the opportunity. I stand here as one of you, as a representative of people. I have come to you and brought greetings by a nation of 125 million people: PM Modi to Australian Parliament.
3. Statue of Gandhi in Canberra is the symbol of our shared values. We are united by ideals of democracy: Modi tells Australian Parliament.
4. Australia will not be at the periphery of our vision, but at the centre of our thought
5. We can only pursue dreams, if we have confidence that our cities are safe, our nations are secure, our region is stable and our world is peaceful
6. We celebrate the legend of Bradman and the class of Tendulkar together. We are impressed by Australian speed as you are charmed by Indian spin, until of course Shane Warne came along
7. We see Australia as a vital partner in India's quest for progress and prosperity, Modi tells Australian Parliament
8. In these 6 months that we have been in office, we have moved forward with ambition and have acted with speed, seeking growth, not just for growth but to transform the quality of life for every Indian
9. Terrorism has become a major threat for us all. In India, we have seen its face closely for three decades. Terrorism is changing in character and expanding its reach
10. Security and defence are important and growing areas of the new India-Australia partnership -- for advancing regional peace and stability, and combating terrorism and trans-national crimes
11. The oceans are our lifelines. But, we worry about its access and security in our part of the world more than ever before
10. PM Modi seeks early closure of India-Australia nuclear deal to facilitate import of Uranium.
12. India will organise 'Make in India' show in Australia next year while Australia will hold business week in India in January 2015: PM Modi at the joint press conference with Abbott
13. India has asked for easier access to Indian businesses in Australia and also for speedy clearances of business proposals
14. This is a natural partnership arising from shared values, interest and strategic maritime locations. Huge opportunities of partnership in every area we can think of
15. India's development, demography and demand provide a unique long term opportunity for Australia and all in the familiar framework of democracy. There is no other example of this nature in the world. Indian investors, too, are coming here in growing numbers and commitments
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