Addressing the nation from Red Fort, he said the 64-year old Planning Commission, a vestige of socialist era, would be soon replaced with a new institution to address the current economic challenges and strengthen the federal structure.
"We need a new body with a new soul... We will have to think about giving a new shape to the Planning Commission... Very soon this new institute will start working in place of Planning Commission," Modi said.
Modi invited the global business community to set up manufacturing facilities in India giving the slogan 'Come, Make in India'. He exhorted youth to become entrepreneurs and manufacture 'zero-defect' goods with a view to make the country a global export hub.
Announcing the abolition of Planning Commission, Modi said it was set up to cater to the needs of earlier times and has participated in its own way in the development of the country.
Justifying the need to replace the Commission, Modi said: "Sometime it becomes necessary to repair a house. It costs a lot of money. But it does not give us satisfaction. Then we feel it is better to make a new house".