He added that a part of the memorial will have a special area created to remember the parents of Moshe Holtzberg.
Later, Samuel and the baby Moshe were taken to Israel where they have been living since the past 10 years, before coming to India for their first visit to Chabad House since the tragedy this year.
His paternal and maternal grandparents and the other who accompanied the child to the building were all thankful that the young survivor was able to return to the Chabad House.
Sandra Samuels, Moshe's nanny, traveled to Israel with him after his parents were killed and was given Israeli citizenship in 2010.
Moshe Holtzberg's parents were among six people gunned down at the Jewish center, which was one of the targets of the 10 Muslim militants who rampaged through India's financial capital for three days almost a decade ago.
In a brief address in Hebrew, Netanyahu thanked Moshe for hosting him and taking him around his residence inside Chabad House where he lived as a toddler.
"This place is a unique merge between love for Israeli people and the hatred towards the people of Israel". Baby Moshe visited Chabad House in advance on uesday so he can feel at ease later.
Prime Minister Benjamin Netanyahu developed a close bond with 11-year-old Moshe Holtzberg, whose parents were killed in an Islamic terror attack at the Chabad House in Mumbai, India, in November 2018, when he was just two.More news: Local Koreans react to united Olympics team
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"My heart beats, my heart is moved, to return to my parents' home, the Chabad House that has been rebuilt and refurbished", the boy said.
Speaking at a news conference in New Delhi later Tuesday, Netanyahu said India and Israel are "challenged by radical Islam and its terrorist offshoots from a variety of corners".
"The terrorists could not get to the (then) two-year old Moshe due to the love of his nanny Sandra". He said light would spread from the memorial to make the world a better place.
Created to educate and inspire people of all backgrounds to act for the betterment of themselves, their communities and the world, the Living Memorial will turn a spotlight on the lives of the Holtzbergs, and the ideals and values that catalysed them to pursue lives benefiting humanity.
During Thursday's event, Moshe and Netanyahu unveiled a plaque in memory of the attack. It would be the right thing to do to compensate the victims of terror, as PM Netanyahu has said that those who committed this act of terror will be made accountable for.
According to the Chabad House, a centre for the ultra-orthodox Chabad-Lubavitch movement, the Living Memorial incorporates elements of the apartment where the Holtzbergs lived.
Moshe was 2 at the time of the attack and was carried to safety by his nanny, who found him by his parents' bodies. On the top floor where the sites of the other terror attacks that swept through Mumbai are visible, a reflection garden will offer a serene spot recognising all the victims of the attacks. After stumbling over more words about India and Israel he said, "Dear Mr Modi I love you and the people of India".