Modi's cabinet will number 45 including him, down from 71 in outgoing prime minister Manmohan Singh's scandal-tainted Congress-led coalition administration, the Press Trust of Indian news agency and NDTV channel reported.
Modi, whose Bharatiya Janata Party (BJP) won the first majority in 30 years earlier this month, was due to be sworn in Monday at a mega-ceremony to be attended by India's neighbours, including Pakistani counterpart Nawaz Sharif.
"Team Modi" will have 23 full-rank cabinet ministers, down from Singh's 28, while the number of junior ministers known as ministers of state will be reduced to 22 from 43 in Singh's government, the reports said.
NDTV, the CNN-IBN news channel and the Hindustan Times newspaper said Modi would make himself defence minister, while the BJP's most senior woman leader Sushma Swaraj was widely tipped to be foreign minister.
Long-time Modi ally Arun Jaitley was seen as frontrunner for the vital finance portfolio as Indians look to the BJP to live up to promises to boost growth.
Early Monday, Modi confirmed rumours that he planned to slash the size of the cabinet in keeping with his campaign promises of "less government, more governance".
Some government departments would be "transformed into Organic Ministries for quicker pace of work and better coordination between departments," he tweeted.
"This is a step towards smart governance and will give us added strength to fulfil the aspirations of the people," he added.
BJP president Rajnath Singh was widely linked to the home ministry job.
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The average age of the Ministers is mid 50s. 25% of the Ministers are women. The youngest is just 38. Well done PM Modiji.
He has started with Merger of Ministries. Instead of Granting Ministerial Powers to his MPs he is going to reduce to size of Cabinet. This will save money & will helpful to use all resources to take prompt decisions & fast actions. I am working in an Indian MNC which was ready to open a new Export oriented production facility in Maharashtra or Gujarat but Business friendly policies forced it to open in Kutch district of Gujarat. He is nothing but Business & Development Icon Himself.
@mega Arun jaitley has super portfolio finance+defence+corporate affairs. Don't know how he will manage such heavy weight portfolio finance ministry is a big headache ministry that consumes time. But he has experience and knowledge, think till state assembly elections he will those three temporarily then give one away.
No the news has been updated.. Arun jaitley will handle extra charge of defence ministry along with his portfolio of finance ministry.