"The decision to keep Jammu and Kashmir directly under the central administration for a brief period was a well-thought decision," he said making an address to the nation two days after the Parliament approved abrogation of Article 370 and bifurcating the states into Jammu and Kashmir as a Union Territory with Assembly and Ladakh as Union Territory without Assembly.
The Prime Minister said the decision will support the economic progress of Jammu and Kashmir and Ladakh as well as the whole of India.
"When peace and prosperity prevail in this important part of the world, the efforts of world peace will naturally be strengthened," he said calling upon local residents to move forward to build a new Jammu and Kashmir and new Ladakh with the new India.
He said through the new system, the region Jammu and Kashmir will be "freed from terrorism and separatism" and it will be taken to a new height of development.
"Since Governor rule was implemented in the region, the state administration has been directly in touch with the Centre due to which the effects of good governance can be seen on the ground," he said expressing confidence that the people of Jammu and Kashmir will achieve their goals with renewed vigour in an environment of good governance and transparency.
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He said under the new system, it will be the priority of the Central government that the employees of the state, the Jammu and Kashmir police, get equal facilities at par with the employees of the other Union Territories and the police.
He also said the process of filling the vacant posts of Central and state in Jammu and Kashmir and Ladakh will be started soon which will provide employment opportunities to the local youth.
"A new era has begun for the people of Jammu and Kashmir and Ladakh with the revocation of Article 370," he said adding that with the "historic" decision, the dream of Sardar Patel, Babasaheb Ambedkar, Syama Prasad Mookerjee, Atal Bihari Vajpayee and crores of patriots have now been fulfilled.
The Prime Minister said that no one was discussing the harm Article 370 was inflicting on the people of Jammu and Kashmir and nobody could tell about the benefits it was providing to the people of this region.
"Article 370 deprived brothers and sisters of Jammu and Kashmir and Ladakh of many rights and was a big obstacle to their development. That system has been done away with," he said.
The Prime Minister said Jammu, Kashmir and Ladakh has the potential to become the biggest tourist destination of the world.
"There was a time when Kashmir was the favourite destination of several Bollywood filmmakers. In the near future even international films will be shot there," he said.
The Prime Minister assured people of both the regions that just like panchayat elections were conducted with transparency, the Assembly elections will also be held.
He also urged the Governor to constitute the Block Development Council at the earliest which has been pending for the last two-three decades.