"I am aware of the political price I will have to pay for the steps taken by the government but I am ready for it," PM Modi said, addressing the opening session of the Hindustan Times Leadership Summit.
He also noted that there has been a "positive change" in the mindset and self-confidence of people "like never before", ever since his government came to power in 2014.
Opposition parties accuse the government of leaving millions of Indians facing hardships with reform measures like demonetisation and the national sales tax GST.
The Prime Minister said "big transformations" do not come easily and a "hauling up of the entire system" was needed.
After demonetisation, black or untaxed money that was part of a parallel economy had become part of the formal system, he stressed, adding that data mining after the notes ban was helping the government track down the corrupt.
"We can increase our ease of doing business ranking from 142 to 100 only when we take initiatives for big transformation," he told the gathering.
PM Modi said his government is committed to a development-centric ecosystem free of corruption and focused on citizens.
In 2014, said the Prime Minister, people wanted and voted for a change in system that will be "permanent, stable and irreversible".
"Everywhere in the country, someone had to fight with the system day and night. I am trying and have committed that there will be irreversible change -- ease of living will improve," he said.
(With inputs from IANS and PTI)