He said youngsters in the North Eastern states are generally tech-savvy with good command over English, making them suitable for digital outsourcing jobs from cities like Bangalore and Hyderabad in their own villages and towns.
Addressing a digital communication summit through video-conferencing, Modi said outsourcing jobs are not a "rocket science" and moving them out of big cities to smaller towns, particularly in the North East, will make the country more competitive in the global market which has been seeing a "job war".
"The people from the Northeast have good command over English. They go out from their home in search for jobs. Why should the North East students go to Bangalore to do outsourcing jobs," he said.
His comments assume significance as people from North East have been complaining of harassment in Delhi against the backdrop of killing of a youth here last week.
Modi said he dreamt of a digital India which empowers its citizens through technology and stressed the need for moving to mobile governance.
He said a lot needs to be done for e-governance in India for which time can not wait.
"We are talking about technology. At least our national capital should have wi-fi connectivity. I am working to have wi-fi connectivity in the Gujarat capital," he said.
At a time when corruption is a big issue, he said, "technology intervention" can play a key role in tackling it by ensuring transparency.
Mentioning communication biggies like Facebook, Microsoft, Yahoo, Modi said India should also take a lead in entrepreneurship and big companies aided by governments should set up a corpus to encourage it.