Narendra Modi
Indian Prime Minister Narendra Modi addresses the nation from the historic Red Fort during Independence Day celebrations in Delhi August 15, 2014.Reuters

India's new Prime Minister Narendra Modi, has invited the world to come and manufacture in the country, which he said is powered up and ready to deliver "zero-defect" products.

"Be it plastics or cars or satellites or agricultural products, come make in India," Modi said in his maiden I-Day speech.

"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.

The Federation of Indian Chambers of Commerce and Industry (FICCI) said Modi gave clear signals to investors home and abroad to make India an international manufacturing and export hub.

"We are now confident that the 'Make in India' and 'Made in India' vision will be supported by requisite policy and implementation measures for enhancing the competitiveness of our manufacturing sector," the federation said in a statement.

The Confederation of Indian Industry (CII) said issues related with taxation, including introduction of the GST, land acquisition, faster approvals and the trade policy need to be addressed to boost the manufacturing sector.

Modi said India must dream of zero-defect made-in-India products across the world.

"We need to encourage the manufacturing sector. We need to channelise the strength of the youth through manufacturing. Manufactured goods should have zero defect as also zero effect on environment," the PM said.

Modi asked the youth to enter manufacturing sector by setting up small units with an aim to reduce imports and increase exports.

He emphasised the need for information technology to improve governance and spread education and enhance medical facilities.

The Prime Minister said if the villages could be connected with broadband, education could be provided to children and telemedicine facilities could greatly help the poor.

Modi said the mobile phone network in the country could be used by the poor to operate bank accounts, seek benefits of government schemes and run businesses.

"E-governance is way to good governance...There was a time when it was said that Railway unites the country. I say, today IT has the power to unite the country and its people," Modi said.