In his maiden independence day address, he exhorted the youth to become entrepreneurs and manufacture 'zero-defect' goods with a view to make the country a global export hub.
"From ramparts of the Red Fort, I would like to call people of the world to 'come, make in India'. Come here and manufacture in India. Sell the products anywhere in the world but manufacture here...we have the power, come I am inviting you," he said.
He said global businesses can invest in a wide range of areas including electrical, electronics, chemicals, pharmaceuticals, satellite and submarine.
India's young population have skill and talent which will help India in making the country a export hub of the world, he said, asserting that focus on manufacturing sector would help in creating employment for people besides maintaining balance in exports and imports.
"I would like to tell the youth that our dream should be taking the 'Made in India' brand at every nook and corner of the world," Modi said.
He also asked the young people of the country to enter manufacturing sector by setting up small units.
"They should do research to identify at least one product which they can manufacture and help in reducing the country's import bill. Not only this, but they should look at exporting those items as well. If every youth of this country would start manufacturing at least one product, our country will become an export hub," he added.
However, he said that people should not compromise on two main things - "zero defect and zero effect".
"Our manufacturing should have zero defect so that our products should not be rejected in the global market. Besides, we should also keep in mind that manufacturing should not have any negative impact on our environment," he said.
Citing example of the IT industry, the Prime Minister said Indians have placed the country on the world map in this sector.
"Just 25 years back, the world used to say that India is the country of snake charmers and black magicians, but our 22-23 year old young populations have given a new identity to India in the world," he said.
Further, he expressed concerns over increasing electronic goods import and emphasised on the need to walk on the path of "Digital India".
Pointing out that India's second largest import is of electronic items after crude oil, Modi said: "With Digital India dream, we should focus on electronic goods manufacturing. It will also result in gain to the government's exchequer".