"This budget is a new ray of hope for the poor and downtrodden sections of society," Modi said in his reaction to the union budget presented in the Lok Sabha.
Congratulating Finance Minister Arun Jaitley for his maiden budget, the prime minister said the budget was an effort to make India "skilled and digital" by using latest technology.
"The budget will give an impetus to 'Jan Bhagidari' (people's participation) and 'Jan Shakti' (peoples power)," he said.
Modi took a veiled dig at the previous United Progressive Alliance government and said the budget has come as "sanjeevani" (new life) to a moribund economy.
According to an official release, Modi said the entire world had immense expectations from India and recalled "how in the last decade, the entire economic system crumbled due to which not only India but also the world lost hope and there was an atmosphere of pessimism".
Modi said the budget was "arunoday" (sunrise) for the last man in the queue, the poorest of the poor.
He said development should be "samaveshak, sarvadeshak, sarvasparshi" (all-encompassing) and should reach those parts of the country which have so far remained underdeveloped.
Modi said the government was leaving no stone unturned in doing its duty to ensure the country's progress.
"Since we formed the government, there were discussions about whether this government can free the nation from crisis but the railway budget and today's general budget show that we are moving in the right direction," he said.
The prime minister said the government was committed to extend "all possible help to the poor, the neo-middle class and the middle class, inspired by the mantra of 'Sabka Saath, Sabka Vikas'".
He said the budget has innovative provisions for development of tribal communities and schemes for giving an impetus to skill development for the youth.
"The budget is in line with the government's vision to create a skilled and digital India," he said.
Modi said measures for farmers such as Krishi Sinchai Yojana would benefit them and help achieve the goal of "per drop, more crop".
He also mentioned provisions for cleaning of the Ganga river and women's empowerment.
Modi said the budget will give a ray of hope to the housewife burdened by rising prices.
He also affirmed the government's commitment to make India self-reliant in the defence sector.
The prime minister said his government was "confident of bringing India out of crisis" and the confidence stemmed from the capabilities and strength of 125 crore Indians.
Modi said the strength of people will be channelised for taking India to new heights.