Modi, who arrived in Porbandar in the morning, was accompanied by state minister and Porbandar MLA Babhubhai Bokhiriya and MP Vitthal Radadiya.
He stressed on the need for the use of 'Khadi' as espoused by Gandhi and said crores of poor would get jobs if each and every citizen purchased the cloth.
After the prayer meeting, Modi said that "we should start preparations from today to mark Gandhiji's 150th birth anniversary globally."
"The governor attended inter-faith prayers today morning. Schoolchildren also participated in the event," an official of the Sabarmati Ashram Preservation and Memorial Trust said.
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Mahatma Gandhi's grandson, Rajmohan Gandhi, was also present on the occasion.
Rajmohan Gandhi said that India as a country and civilisation, had lost its capacity for listening.
"If we behave like colonial masters, there would be no difference between us and them," he said.
Meanwhile, Mahatma Gandhi's great grandson, Tushar Gandhi, took part in a "Gandhi Vichar Yatra" in Rajkot as part of the anniversary celebrations.