Some cars were damaged in the explosion that occurred about 150 metres from the embassy on Dr APJ Abdul Kalam Road in the high-security Lutyens' bungalow zone.
In his conversation with Netanyahu over phone, Modi assured him that India accords the highest importance to the safety and security of Israeli diplomats and premises.
Sources said that police also faced some challenges in collecting video footage as most CCTV cameras in the area were not functional at the time of incident.
Not surprised at 'evil attack' as we were on higher alert for few weeks: Israeli envoy on blasts at Delhi embassy
Ron Malka also said the investigations will look into all possible angles, including whether there are any links to the 2012 attack on Israeli diplomats in New Delhi.
An envelope addressed to the Israeli Embassy and containing a note was found at the site of the blast, sources had said.
The Israeli authorities and the embassy are providing all assistance and every information Indian authorities probing the attack.
A low-intensity explosion took place near the Israel Embassy in Delhi near Vijay Chowk, where Indian President and PM where attending during the 'Beating Retreat' ceremony.
The Delhi Police said that the improvised explosive device (IED) went off at 5.05 pm and no one was injured and there was no damage to any property.
Delhi Police chief S N Shrivastava said that the force has registered a case and its Special Cell has started investigating the matter.
Delhi Police chief S N Shrivastava, who inspected the blast site, told reporters that at this point, it is not right to say anything related to the incident as the investigation is underway.
A Mumbai police official said an alert was issued in the metropolis and security had been beefed up following the blast.
'Assured Foreign Minister Gabi Ashkenazi of the fullest protection for the Embassy and Israeli diplomats,' External Affairs Minister S Jaishankar tweeted.
CISF units put on alert near Delhi airports, Metro, govt buildings after minor blast near Israel Embassy
Some cars were damaged in the blast that took place near the pavement outside the embassy on APJ Abdul Kalam Road, a very high-security zone in the national capital.
After the blast near Israel Embassy, Union Home Minister Amit Shah has been in touch with the Delhi Police top brass and is constantly monitoring the situation.
A minor IED blast took place outside the Israeli Embassy in the heart of Lutyens' Delhi on Friday evening.