Shah was speaking in the Rajya Sabha during the debate on a resolution moved by him for the continuation of President's Rule in Jammu and Kashmir along with a bill to amend the state's Reservation Act, 2004.
The day-long debate saw 27 members debating the merits of the resolution and the bill.
The Home Minister, while referring to members before him referring to Vajpayee's famous quote of using 'Kashmiriyat, Jamhooriyat, Insaniyat' to resolve the Kashmir issue, said that the Modi government is also committed towards the same principle.
Elaborating upon 'Kashmiriyat', Shah said that the government firmly believes that it will protect and restore the unique cultural identity of J&K, which at one point of time was known for its religious harmony.
On 'Jamhooriyat' (democracy), the Home Minsiter said the incumbent government was the one which took democracy to the grass-roots level in J&K by conducting panchayat polls.
Regarding the aspect of 'Insaniyat' (humanity), Shah said that under the President's Rule, various government welfare schemes have been implemented at the ground level as the bureaucracy reached out to the people.
He pointed out that schools have been re-opened as well as new electricity and cooking gas connections have been given, while basic food items have been provided at affordable rates.
Similarly, he said the state has the highest coverage under the Ayushman Bharat scheme to provide health insurance.
Shah also said that the government's sentiments should not be misconstrued as its weakness since the country's security remains its top priority.
Additionally, he said that the Central government is committed towards the overall development of J&K, without favouring any one region.
He also reassured the people of the Valley that the government is dedicated to bring development, peace and security in the area.
The Rajya Sabha passed both resolution and the bill moved by Shah.
Consequently, President's Rule in Jammu and Kashmir was extended by another six months. The Parliament gave its nod amidst the government's assertion that it would hold the Assembly polls in the state by this year end as and when the Election Commission (EC) takes a decision in this regard.
The resolution was passed by the Lok Sabha on June 28.
The Upper House also passed the amendment bill of the Jammu and Kashmir Reservation Act, 2004.
( With inputs from IANS )