Modi made the remarks in his video-link address to the people of the Gujarati community living in 20 cities across the US, which lasted for more than an hour and was followed by a questions and answers session.
In his address, Modi lashed out at the UPA Government and alleged that people of India have lost "trust and confidence" in the center, due to its "poor governance" and high corruption.
"I feel biggest crisis (today) is lack of confidence. We need to get this trust back. This cannot be merely done by words: Biggest need today is trust," Modi said while speaking to the audience from different cities of the US, including New Jersey and Chicago.
Besides the overseas Gujarati community across the country, who had organised the event on the occasion of the Gujarat Divas, Indian students in several US universities, like the University of Maryland, had gathered together to watch Modi's live address.
In his speech, Modi insisted that the country is experiencing a new crisis due to developments in the last few months, as he narrated several corruption related incidents.
Lashing out at foreign policy of the UPA government, he alleged that New Delhi is being ruled by weak leaders.
It is unbelievable that the India's Foreign Minister is seen reading the speech of his counterpart from another country, he said.
"Heads of our soldiers are cut but then their Prime Minister fed chicken biryani," he said in an apparent reference to incidents of killing of Indian soldiers by Pakistan.
"Then questions are raised: China withdraws its forces but I wonder why Indian forces are withdrawing from Indian territory? Why did we retreat (from our own territory)?" he said questioning the China policy of the Government.
Addressing the Gujarati Diaspora community, Modi claimed that during his rule in Gujarat, he has given a new meaning to development, which is not only inclusive but integrates all sections of the society without any differentiation.