He was speaking at a meeting of the Inter State Council which felt that terrorism should be put down with an iron hand.
Addressing Chief Ministers at a day-long meeting of the Inter-State Council, he asked the states to focus on intelligence sharing which will help the country stay "alert" and "updated" in countering internal security challenges.
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"On this issue, he urged all concerned to keep politics aside and keep national security paramount," the PMO said releasing his concluding remarks.
The statement comes in the wake of series of terrorist attacks in some countries, including in France.
The meeting, held after 10 years, saw several state Chief Ministers, including Punjab, ruled by Akali Dal-BJP coalition, were sharply critical of the Centre accusing it of "usurping" state's powers.
The Prime Minister told the Chief Ministers that "we should focus on how we can make our country prepared to counter challenges to our internal security".
Modi said internal security cannot be strengthened until and unless the states and the Centre focus on sharing intelligence.
"We have to remain alert and updated always," he said.
Chief Ministers of all states, Lieutenant Governors of Union Territories and several Union Ministers are members of the Inter-State Council.
The Prime Minister said the meeting of the Council would deliberate on internal security challenges and how to counter them and how states the states and the Centre can cooperate.
"With close cooperation, we will not only strengthen the Centre-State relations but make a better future for the citizens," he said.
Chief Ministers Akhilesh Yadav (UP) J Jayalalithaa (Tamil Nadu), Mehbooba Mufti (Jammu and Kashmir) and Siddaramaiah (Karnataka) did not participate in the meeting.
Delhi Chief Minister Arvind Kejriwal, who often attacks Modi, was seen shaking hands with him with Bihar Chief Minister Nitish Kumar watching it with a smile.
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