He said a new thinking has been infused in those working in the Khadi sector in the government as to how to bring in new technology, how to increase productivity and how to rejuvenate traditional heritage "which was lying inactive for 20, 25 or 30 years".
In his monthly radio programme 'Mann Ki Baat', Modi recalled that in one episode, he had discussed about Khadi.
"Khadi is not a fabric, it is an idea," he said.
"I had said that it is not necessary to have everything of Khadi only but if there are various kinds of fabric at home, why should Khadi not be one of them. It may be a bed- sheet, a handkerchief or a curtain. Experience shows that interest among the young generation for Khadi has increased," Modi said.
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He said the Khadi sale has increased and as a result, the poor man's household has directly got linked to employment.
Discount is offered on Khadi from October 2 and people get quite a good rebate, the prime minister noted.
By buying Khadi, enable the Diwali lamp to be lit in a poor man's home, Modi said, asking people to have such a spirit.
He said the poor will get empowered by this, he added.
He said Sewapuri Khadi Ashram at Varanasi in Uttar Pradesh was lying closed for 26 years but now it has got a fresh lease of life.
Employment opportunities were created for a number of people, the prime minister said.
He said Khadi Gramodyog has also revived its training centre at Pampore in Kashmir.
With the reopening of this training centre, the new generation will get a boost in jobs in manufacturing, in weaving, in creating new things, he said.
He expressed happiness that even big corporate houses have started including Khadi items as Diwali gifts.
"Even people have started exchanging Khadi items as gifts. We now experience how something grows naturally," he said.