He also stressed upon the need to promote Khadi industry.
Modi, who distributed 500 wooden charkhas to women, said there was a time when Khadi was used as a tool in fight for Independence now it should be used for fashion.
"Things are different today. See how well Khadi is marketed now. Earlier it was only 'Khadi for nation', now it's also 'Khadi for fashion'," he said.
"I urge entrepreneurs that they participate in ZED (zero defect, zero effect) movement. At least 10 lakh units should come forward. We have set 50 parameters to meet ZED certification standard. Please enable yourself to comply with those," the Prime Minister said addressing at National Award function for MSME.
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Modi also launched ZED Certification Scheme for Micro Small and Medium Enterprises (MSME) and SC/ST HUB for providing support to entrepreneurs.
"The spirit of entrepreneurship among Dalits will benefit us. There are youngsters whose dreams are to create enterprises and jobs," he said.
He also said India today is the fastest growing major economy in the world and amid global slowdown, India is providing strength to the world economy.
"For India's economic progress, the MSME sector is crucial," he said.
Modi also went around an exhibition and tried his hand at a Charkha.
After giving national awards to MSMEs, he said the central government was working to give boost to small and medium enterprises.
Noting that India aim should be to target global markets, Modi told the entrepreneurs that government stands shoulder to shoulder with them to realise this aim.
Modi said that despite two earlier years when there was drought and when agriculture production dropped considerably, it was the manufacturing sector, especially MSMEs, which ensured that country had a steady economic growth rate.
He said at a time when world economy was facing slowdown like the one witnessed in 2008, India's economy was strong and was giving strength to world economy.
On promoting Khadi, Modi, who also moved the spinning wheel here, said the sector provide self employment opportunities, especially to women, and helps to realise Mahatma Gandhi's dream to strengthen rural economy.
"During country's Independence movement, the mantra was Khadi for nation..Today's mantra is Khadi for fashion, if we give boost to this, it will help bring change in rural landscape," he said.
Modi appealed to the people to buy more and more Khadi products including during festivals like Diwali, and make Khadi part of one's wardrobe.
He said that be it tribals or Dalits, they too have bigger aspirations and need of the hour was to provide them right opportunities.
SC/ST entrepreneurship has to be promoted and given a boost, he said.
About ZED scheme, he said times have undergone a change and common consumer is not willing to make compromise on quality.
He also asked the small and medium entrepreneurs to look beyond Indian markets and said our aim should be to adopt global standard in quality control and make our presence felt in international markets.
Modi also said how one used to blindly trust when one found "Made in Japan" mentioned on any product, because of the global standard in quality which that nation had adopted.
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The Prime Minister also touched upon the strides which India has made in its space programme and talked about country's Mars Mission and its cost effectiveness which cost lesser than a "Hollywood movie".
Notably, India created history by becoming the first country to enter the Mars orbit in its maiden attempt.
Modi said the world was acknowledging the progress made by country in space programme, pointing out that India has made fast progress.
Modi accepted Parkash Singh Badal's request to lay the foundation stone for an All India Institute of Medical Sciences in Bhatinda, to be set up with a sum of Rs 1,000 crore.
He presented National Awards for MSMEs to 250 entrepreneurs, saying that the idea behind the ZED scheme is to spur competition among small businesses and help them attain recognition in the international market.
"Commonly, it used to be said Delhi bahut dhoor hain. And it was actually so. Such a big country, but even small and big works used to happen in Delhi, but we changed that tradition ... We should accept that even outside Delhi, large part of India exists," he said.
"During past few days, schemes launched by Centre were in different parts of India like Kolkata, Ranchi, Raipur, Bhubaneswar, Chennai, Sonepat..We believe every state has its own importance and its own strength," he said, adding that he was happy to be in Ludhiana for the function here.
Modi also said that he wanted to personally hand over the award to all the 250 entrepreneurs, but time constraints would not permit that, he said.
On the occasion, he also made a mention of Dalit Chamber of Commerce, a body of Dalit entrepreneurs, which was doing good work of promoting entrepreneurship within the community.
Highlighting the importance of product packaging, Modi recalled that during Pandit Jawahar Lal Nehru's government, a Commission had been set up to market and make Ayurveda popular.
"The Commission in its report on very first page mentioned that if we have to boost Ayurveda, first of all stress has to be on its packaging," he said.