Modi made the comments while chairing the meeting of the Council of Scientific and Industrial Research (CSIR) on Friday evening.
"Prime minister listed 5G, AI and affordable and long-lasting batteries for renewable energy storage as some of the emerging challenges which the scientists need to focus on," according to a statement issued by Indian Prime Minister's Office.
"He highlighted the need to combine traditional knowledge and modern science to develop world-class products."
Modi asked scientists to work on the aspirational needs of India and focus on real-time social issues.
"He said that there is a need for CSIR to focus on real-time social issues that India is facing such as malnutrition - through value addition in agriculture products - and water conservation," the statement said.
During the meeting, the prime minister was given an overview of the work done by the CSIR.
"Prime minister stressed on the importance of developing virtual labs so that science can further be taken to all segments of the students in each and every corner of the country," the statement said.
"He also suggested measures to enhance collaboration in R&D projects amongst Indians working in different parts of the world," the statement added.