Addressing the first PIO Parliamentarians Conference here, he said India has always played a constructive role in the world arena.
If any philosophy can counter extremism and radicalisation, it is Mahatma Gandhi's and India's philosophy of non-violence and 'satyagraha', he noted.
"We neither have the intention of exploiting anyone's resources nor are we eyeing anyone's territory. Our focus has always been on capacity building and resource development," the prime minister said.
"India is that country which has always played a constructive role in the world arena. We have not weighed our policy towards any country on profit or loss basis, but have viewed it from the prism of human values."
India's model of development aid, he added, is not based on give and take, but depends on the needs and priorities of countries.
"At a time when the world is divided by ideologies, India believes in the mantra of 'sabka saath, sabka vikas'," he said.
"If there is any philosophy to counter radicalisation and extremism, it is the philosophy of Mahatma Gandhi and the philosophy of Indian values," he said.
India, with its rich values and traditions, has the power to lead and guide the world dealing with instability, Modi said.
According to the prime minister, the 21st century is known as the Asian century and India has an important role to play in it.
Persons of Indian origin can take pride in the country's increasing strength worldwide, he told the gathering.
Over half the total investment into the country came in only the last three years with a record USD 16 billion of foreign direct investment (FDI) last year.
All this has happened due to far-reaching policy changes ushered in by his government, with "reform and transform" being its guiding principle, the prime minister said.
"India is changing, India is transforming. India has moved far ahead and Indian hopes are at the top and you will see the result of change in every sphere. A record USD 16 billion dollar FDI came into the country last year," he said.
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