In a public address organised by the Dhaka University, Modi said he was positive about finding a solution to the issue.
"We have had discussions about it. I am of the view that birds, air and water - these three do not have to have visas at all. I think water cannot be a political issue. In fact this we can decide taking a humanitarian approach," the Prime Minister said.
The issue had figured prominently during the delegation level talks Modi had with Bangladesh Prime Minister Sheikh Hasina yesterday.
The Teesta deal was set to be inked during the then Prime Minister Manmohan Singh's visit to Bangladesh in September 2011 but was postponed at the last minute due to objections by West Bengal Chief Minister Mamata Banerjee, who had also dropped out of the Prime Ministerial delegation.
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Expressing satisfaction over his talks with Hasina after which a total of 22 pacts were signed, Modi said there are issues which need to be resolved.
"Still a lot has to be done. My country has 1.25 billion people. There are so many states. I have to take them forward together. And when I move forward with Bangladesh, my states will also have to be moved forward," Modi said in an apparent indication that Mamata Banerjee will have to be on board in finding a solution to the Teesta issue.