Addressing the nation from the ramparts of the Red Fort on the 78th Independence Day, Modi also said the government wants more foreign students to come to India and study.
"We want to give a boost to our education system in accordance with the 21st century and the new education policy has a very big role to play in it. I do not want that the youth of my country should be forced to study abroad. The millions of rupees of middle class families should not be spent in sending children abroad for studies.
"We want to develop such an education system here that will prevent the youth of the country from going abroad. In fact we would want foreign students to come here and study," he said.
The prime minister also said an additional 75,000 medical seats will be created in the next five years.
"Even today, children, mostly belonging to the middle class, are going abroad for medical education. They spend millions on medical education abroad. Around 25,000 youths every year go abroad for medical education and they go to such countries, I get surprised when I hear about them.
"So we have decided, 75,000 new seats will be created in the medical line in the next five years," Modi added.
The PM also sought to revive the "ancient Nalanda University spirit," positioning India as a global education hub by promoting higher learning and research
"Recently we have rebuilt the Nalanda University which has a glorious history. The university has started functioning once again, but we will have to once again awaken the centuries-old Nalanda spirit in the field of education," he said.
Modi said the students must face no hindrance due to language since the new National Education Policy has emphasised on the mother tongue.
"Language should not be an obstruction. The power of mother tongue gives the strength to even the poorest of our country to fulfil their dreams and that is why we have to emphasise on education in our mother tongue," he said.