"When India talked of terrorism 20 years back, many in the world said it was a law and order problem and didn't understand it. Now terrorists have explained terrorism to them so we don't have to," Modi said at a community reception at the Ritz Carlton in Tysons Corner, Virginia.
He said India has succeeded in telling the world about the need to uproot the menace of terrorism.
"When India conducted surgical strikes the world experienced our power and realised that India practices restrain but can show power when needed," the Prime Minister said as he highlighted the achievements of his government in the last three years.
India conducted surgical strikes on terror pads across the LoC on September 29 last year after the Uri attack.
Modi said India has been a victim of terrorism, but "the world did not and cannot stop us. We have succeeded in conveying to the world the deleterious effects of terrorism on India."
In an apparent dig at China, Modi said that India believed in following the world order.
India, he said, does not believe in achieving its goals by not following the global rules.
Modi said India has always followed the path of development within the confines of the global order and rule of law.
"This is India?s tradition and culture," he noted, apparently referring to Chinas assertiveness in the South China Sea.
Modi also promised to the Indian American community that he will fulfil their dreams of Indias development.
Modi said he is relentlessly working to fast-track Indias development wherein there is no scope for corrupt and dishonest.
He said Indians hate corruption and that his government is determined to address this challenge of corruption.
The Prime Minister said that there has not been a single allegation of corruption against his government in the last three years.
Modi said with the help of technology his government has developing a system where honesty is the common practice.
Technology brings transparency and helps in fighting corruption.
"The results are there for all to see," he said.
Noting that infrastructure is essential for sustainable development, Modi said the focus of his government is on global benchmark, setting high standards of development.
Modi also praised the Ministry of External Affairs (MEA) and Sushma Swaraj for giving a human face to diplomacy and effective use of social media in good governance.
"MEA is one ministry of the government which has demonstrated through the use of social media, for the first time, that it cares for poorest of Indians," he said.
The Prime Minister assured the Indian-Americans that if they have a problem, the Indian Embassy will always find a solution.