In his concluding remarks at the 5th meeting of the Governing Council of NITI Aayog, he also called for people to people contact between residents of different states, under the "Ek Bharat, Shreshth Bharat" umbrella.
The Prime Minister said global circumstances currently offer a unique opportunity to India as the country is establishing itself on global benchmarks such as "Ease of Doing Business".
"We should endeavour to make India a $5 trillion economy by 2024, at the earliest. For this purpose, states should aim to increase their economy by 2 to 2.5 times. The common man's purchasing power would increase as a result of this," he said.
Modi called upon the Chief Ministers to study their state's export potential and work on export promotion.
On the committee on structural reforms in agriculture, the Prime Minister said it would include some Chief Ministers as well and would take a "holistic approach" on the subject, including allied activities.
Referring to the creation of two new ministries and one new department created at the Centre, he said the Island Development Department in the Home Ministry, would work on the development of about 1,300 islands that are a part of India.
He urged the littoral states to take an initiative with regard to the islands contiguous to their coastline.
The Prime Minister said that the mining sector can provide significant employment opportunities but reminded that the bottlenecks in operationalization of mines continue to exist in several states.
"The NITI Aayog is working on these issues," he said.
He also called upon states to review the progress of "Aspirational Districts" from time to time and said a new model of governance needs to be established in aspirational districts.
The Prime Minister said that the Union government is keen to partner with the states, and work together for India's development.
He said India needs to prioritise and make appropriate interventions to solve its water problems.
"Water conservation and irrigation, both require a massive effort, based on public participation," he said.
The Prime Minister called for an outcome based approach for the Ganga River Basin Authority.
( With inputs from IANS )