The verdict handed Modi, 63, a powerful mandate to revive India's stagnant economy and implement a more assertive foreign policy after 10 years of left-leaning Congress party rule.
The Prime Minister-designate paid homage at the memorial of iconic freedom movement leader Mahatma Gandhi on Monday in New Delhi ahead of the inauguration.
Modi invited his Pakistani counterpart Nawaz Sharif to Monday's ceremony in a first bold step aimed at mending strained ties between the neighbors.
The Pakistani prime minister, who arrived in New Delhi on Monday morning, said he was "carrying a message of peace from Pakistan", Times of India newspaper reported.
Sharif, who has hailed Modi's "impressive victory", is attending the oath-taking ceremony along with all heads of government from the South Asian Association for Regional Cooperation (SAARC) which includes Pakistan.
"Great having leaders from SAARC nations & Mauritius join us during the ceremony. Their presence will make the occasion more memorable," Modi said on Twitter on Sunday.
Modi, the son of a tea-stall owner, secured the biggest majority in 30 years at the election, trouncing the Congress on a promise of reviving manufacturing and investment to create millions of jobs.
Local media reports said that Modi had indicated that he would have smaller government than the outgoing one.