Prime Minister also urged all the companies and private sector in the country to come forward as well as for allopathic based large hospitals, as well as for yoga and Ayurveda.
The institute is modelled on the lines of All India Institute of Medical Sciences (AIIMS) and is set up under the Ministry of AYUSH.
He said under the foreign rule, there had been attempts to ridicule and lessen the importance of Indian system of knowledge and achievements of its rishis and scientists, and after Independence too not much attention was paid to reclaim the country's rich heritage.
He also said the farming of medicinal plants will provide new employment opportunities. With the demand for medicinal plants increasing worldwide, the World Health Organization (WHO) has projected that the global herbal market will grow to Dollars 5 trillion by 2050 from the current level of USD 62 billion. "He mentioned measures such as capping prices of stents and knee implants; and establishment of Jan Aushadhi Kendras for providing medicines at affordable prices".
Naik also said "the government had already begun work on building AIIMS-like facilities for Ayurveda across India to promote the science". "We forgot our legacy for a long time.But now we have started remembering it again", the Prime Minister said.
"Expect an environment of wellness so that people don't have to visit hospitals".
The Ministry of AYUSH has requested all the state governments, Ayurveda teaching institutions, associations of Ayurveda practitioners and Ayurveda drug industries among others in India and overseas to observe "Ayurveda Day" on October 17 and undertake various activities like organising public lectures, seminars, exhibition and radio talks.
Modi claimed that efforts had been made in the past to destroy "India's strengths" and its traditions such as Yoga and Ayurved were belittled during the "era of slavery".
While speaking on Ayurvedic education, he said that the existing stream or module of instruction should be revisited and supported with the issuing of certificates at every level of Ayurvedic education. The PM said ayurveda experts need to find medicines which give immediate relief to patients and also keep side-effects at bay.
"The government wants that the poor get access to the healthcare system".