"I think Priyanka is carrying her India, her culture and traditions with her, which is what is making her so special over there (in the West). She has not become a foreigner," Madhu told news agency IANS over phone from Mumbai.
In that sense, she feels her daughter is representative of a modern Indian woman.
"The modern India is this -- who have the values and talent, and who can pick on any industry in the world. If you see, everywhere Indians are doing so well... It's just that Priyanka is more prominent, we know more about her. But everywhere we see Indians are doing remarkably beautiful," she added.
Priyanka, who features in American TV show "Quantico" and has a role in upcoming Hollywood film, is often on the move due to her work commitments -- dividing her time between India and the US.
Madhu, who also produces films under their home banner Purple Pebble Pictures, says she misses her daughter, and will be going to the US to visit her again in April.
Madhu says she is "hoping" and "praying" to produce a film, which stars Priyanka.
Talking about the mother-daughter bond, Madhu said: "I am quite a parent for her. I am more of mum. With her dad... They were friends. She takes care of me... There was a time when I was her mother, and now she's my mother."