The meeting took place on the sets of their forthcoming film "Players" at Filmcity.
Key was presented a Ganesha idol holding a handicam by directors Abbas-Mustan to symbolize Bollywood's association with New Zealand.
In return, the prime minister gave to the directors a beautifully framed print from the movie "King Kong", signed by Richard Taylor, co-producer of "Lord of the Rings".
"Namaste! I'd like to thank Viacom18, Abbas and Mustan, Abhishek Bachchan and Bipasha Basu for making their wonderful film 'Players' in New Zealand, " Key said.
"I did manage to see a couple of pictures from the filming down in Wellington and Auckland.
"New Zealand is a great place to make films and is very popular with the Bollywood industry. We've already had 150 Bollywood movies made in New Zealand."
"Players" is an official remake of Hollywood film "The Italian Job".