Modi made it to the 15th rank on the Forbes list of 'The World's Most Powerful People', which was topped by Russian President Vladimir Putin.
This is the second year in a row that Putin carries the crown. He is followed by United States President Barack Obama.
Obama had previously been on the top of the list for every year with an exception of 2010.
Chinese President Xi Jinping has bagged the third spot on the list.
UK Prime Minister David Cameron featured on the 10th spot.
The list of 72 most powerful people in the world also included the names of Reliance Industries chairman Mukesh Ambani at 36th position, ArcelorMittal chairman and CEO Lakshmi Mittal at 57th spot and Microsoft's Indian-born CEO Satya Nadella at 64th rank.
On Modi's debut on the list, Forbes said: "India's newest rock star doesn't hail from Bollywood. He is the newly elected prime minister who sailed into office in May with a landslide victory, ushering the Bharatiya Janata Party (BJP) into power after decades of control by the Gandhi dynasty."
"A Hindu nationalist allegedly responsible for encouraging and allowing communal violence and sectarianism in the Gujarat riots in 2002 and on a U.S. no-entry list since 2005 to 2014, Modi is credited with massive reconstruction projects in his home state of Gujarat. His administration promises to bring economic rejuvenation to other beleaguered parts of India. The world is as impressed as the citizens of India: So far he's toured the U.S. and China, and met with his Southeast Asian neighbors," the magazine said.
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