"The shadow of terror is bent upon eliminating humanity. In this situation the ideals of Mahatma Gandhi like non- violence and 'Vasudhaiva Kutumbakam' (the world is one family) are appropriate answers to this challenge," Modi said in the city of Hannover, on the first day of his three-day visit to Germany.
Modi also referred to global warming and said the principles practiced by Mahatma Gandhi can address this challenge.
Modi said establishing the bust of Gandhi in Germany was a matter of pride for the whole world and those who believe in humanity. He said Gandhi may have been born in Gujarat in India but he was an global citizen and his ideals continue to guide humanity.
Hundreds of Indians had gathered to witness the event and chanted slogans like "Bharat Mata ki Jai".
Prior to this function, Modi visited the townhall here and interacted with groups of Indian students. He enquired about their education and posed for photos with them.