He was speaking on his first visit to the Himalayan region since Islamist attackers targeted Hindu tourists in the popular Pahalgam area, killing 26 men, triggering hostilities between the nuclear-armed neighbours that ended in ceasefire last month.
Key among these was a $5-billion rail link between the Kashmir Valley and the rest of India, which has been more than 40 years in the making and features the world's highest railway arch bridge.
India has accused Pakistan of backing the April attack, a claim denied by Islamabad, and they engaged in four days of fierce fighting last month before agreeing to a ceasefire.
Pakistan's foreign ministry did not immediately respond to a request for comment on Modi's remarks.
The region, which drew more than 3 million visitors last year, is at the heart of the hostility between the old foes, both of which claim it in full, but rule it in part and have fought two of their three wars over it.
Trains run in the Kashmir Valley but the new link is its first to the wider Indian railway network. Apart from boosting the regional economy, it is expected to help revive tourism, which plummeted after the April attack. ($1=85.7500 Indian rupees)
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