He was speaking at the closing session of the Conference of Governors at the Rashtrapati Bhawan here, a PMO statement said.
He said various government schemes for the benefit of the poor are better implemented in areas where good governance exists, the statement added.
Giving examples of schemes such as Mission Indradhanush, the prime minister said the governors can facilitate greater effectiveness of government initiatives.
In his opening remarks at the conference yesterday, PM Modi had said that the governors can become catalytic agents for change in the society while upholding the sanctity of the Constitution.
He mentioned the target of 'New India' by 2022 and emphasized that this can be achieved only by making it a people's movement.