In his address to the 18th SAARC summit in this picturesque Nepalese capital, Modi said that as SAARC "we have failed to move with speed that our people expect" which some argue was due to a development gap.
"Or, is it because we are stuck behind the walls of our differences and hesitant to move out of the shadows of the past," he asked, asserting that "this won't resolve our differences, but will certainly deprive us of opportunities."
"Because, in the life of an individual or a nation, a good neighbourhood is a universal aspiration," he said in his maiden address at a SAARC summit.
During his nearly 30-minute speech, Modi assured level-playing field to companies in the member countries to do business in India.
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"We will address your concerns and give you a level playing field in India. But, I encourage you to attract Indian investments to produce for the Indian market and create jobs for your youth.
Modi also announced that India will provide immediate medical visa for patient and an attendant coming for treatment as well as business visa for 3-5 years for SAARC nations.
Identifying health as a major sector for cooperation among the member countries, Modi said India will support monitoring and surveillance of polio-free countries and provide vaccines where it might reappear.
Talking about education, he said India was prepared to connect the South Asian students through online courses and e-libraries and offered to extend India's National Knowledge Network to SAARC region when it was ready.
Referring to space technology, Modi said India's "gift" of a dedicated satellite for the SAARC region has been planned for launch in 2016.