Modi said the government was using technology to ensure effective 'last mile delivery of services' and it was also being made an effective medium to bring in 'Ease of Living'.
Modi was addressing DST-CII India Italy Technology Summit, along with his Italian counterpart Giuseppe Conte.
"India has made technology a medium for attaining social justice, empowerment, inclusion and transparency. The government is using technology to ensure effective last mile delivery of services," he said.
Highlighting the achievements of the Indian space programme, he said it was an example of innovation with quality.
The prime minister said India was now able to send satellites of many countries, including Italy, into space and this showcased the nation's capability of creating innovative solutions at a low cost.
In his address, Conte said he had a "fruitful discussion" with Modi and the two sides explored the possible contribution of Italy to 'Make in India' in various sectors.
Conte said he and the prime minister explored the potential for a new partnership in the area of railway and re-launching of cooperation in development of renewable energy.
"India and Italy have lot of similarities and complementarities that make us natural allies in offering effective solutions to the challenges in 21st century," Conte said.
Innovation, he said, could be a catalyst for achieving inclusive growth and instrument to growth of global development.
Increasing cooperation in the area of heritage was also one of the important aspects, the Italian prime minister said.
"I'm pleased that cultural heritage has been included in the focus area of this technology summit. As Italy has highest number of UNESCO sites, we have used innovation technology for conservation of monuments. We are pleased to share with India the unique expertise we have gathered in this area," he said.
Modi said to strengthen economic ties, the countries have agreed to set up Joint Commission on Economic Cooperation (JCEC) under which a CEO forum would also be established.
He said the two sides have agreed to establish a fast track mechanism to increase two-way investment and remove hurdles in trade.
"The common goal of our two governments is to become the most strategic partners in innovations to provide a very concrete and more effective answer to the global challenges that we face.
"We must keeping working together at all levels to build more sustainable energy production and support system to reduce pollution in our cities," Modi said.