The portrait was created by weavers of Sri Ramalinga Sowdambigai Handloom Weavers Co-operative Society in Sirumugaipudur in Coimbatore district.
Modi and Xi held aloft the two sides of the red and gold silk portrait and posed for photographers.
Earlier, Modi took Xi around an exhibition of artefacts and handloom at the Taj Fisherman's Cove hotel where the summit was held.
Modi explained to the Chinese President about the artefacts, including the significance about the tall brass traditional lamp there.
The Chinese President evinced great interest in the artefacts and handlooms, including of live demonstration by weavers, as Modi explained all the facets.
Earlier, in his remarks at the opening of the talks, Xi had said his visit to Mahabalipuram is a "memorable experience" and would have "far reaching impact" for the Chinese people.