PM Modi addresses the inaugural function of the 6th ministerial 'Heart of Asia conference - Istanbul Process on Afghanistan' in this Punjab city being attended by leaders from south and central Asia and several western countries.
Modi said that the flow of trade, people and ideas through the region has often intersected in Amritsar on one of Asia's oldest and longest surface arteries the Grand Trunk road.
He defined residents of the city as people with spirit of enterprise, creativity and hard work.
Modi begin his inaugural speech with "Namaskar and Sat Sri Akal", the traditional Sikh greeting.
Welcoming the delegates to the holy city, he said that Amritsar is blessed with simplicity, beauty and spirituality, and is abode to the Golden Temple, the holiest shrines of Sikhs.
It is a place made sacred by Sikh Gurus who meditated here, he said adding that it embodied peace and humanism, and was open to all people and religions.
"Its streets and parks tell stories of great valour and immense sacrifice," he said.
Talking about Amritsar, Afghan President Ashraf Ghani said the city used to be a centre of commerce and business which connected India to Central Asia, Russia and beyond.
Mr Ghani visited the Golden temple last evening with Mr Modi.