The Prime Minister also underscored the need for having good people in politics to take the country to greater heights.
Addressing students and later replying to their questions via video conferencing in the second such initiative, Modi said he has issued direction to replace 'Character certificates' with Aptitude certificates which will reflect the personality of the students when they leave schools.
The Prime Minister spoke highly about the role of teachers in nation-building and said he interacts with students on the occasion of Teachers' Day as students are their identity.
"Mother gives birth to a child, (guru) teacher gives life (jeevan). There will hardly be anyone in the world who will not admit the role of their mother and teacher in their life," Modi said.
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"Sometimes people wonder why spend time with students on Teachers' Day. It is because students are teachers' identity," he said. There was criticism last year that the Prime Minister had ignored the teachers when he interacted with students on Teachers' Day last year.
The Prime Minister also launched two commemorative coins -- one of Rs 125 denomination and another of Rs 10 on the occasion.
"A teacher can never retire. Being a teacher is not like any other occupation," he said.
When a student from Goa asked him about his favourite sport, Modi in a lighter vein responded, "We all know the games politicians play." He than narrated, how he used to climb trees and learnt swiming.
On politics, he said "Unfortunately politics has acquired a lot of bad name. Talented people from all walks of life are required in politics.