Here's what he said in his nearly 90-minute speech:
On Independent India
Prime Minister Modi said that the poison of casteism and communalism has no place in India and we have to defeat these through development.
Stressing that unity in diversity will lead to the realisation of the dreams of Indians, he said August 15 should always be seen as a morning of hope of the dreams and aspirations of 125 crore Indians.
Saying that the people's participation is the biggest asset of a democracy, he said that Team India of 125 crore people can take the nation to new heights.
"This is Team India, a team of 125 crore Indians. This is the team that makes the nation and takes our nation to new heights."
On Swachch Bharat Abhiyan
Prime Minister Modi said that the 'Swacch Bharat Abhiyan' had touched every person in the country and thanked the children of the nation for enthusiastically participating in the cleanliness campaign.
"Last time, from the Red Fort, I spoke about toilets and cleanliness. People wondered what kind of PM is he, talking about these issues... If there is something that has touched every person, it is the movement towards cleanliness," Prime Minister Modi said.
"People from all walks of life, spiritual leaders, media friends, celebrities, everyone haVE worked to create awareness... Who has given maximum strength to Swachh Bharat Abhiyaan? It is the children of India," he added.
On toilets for all
Prime Minister Narendra Modi said the government had "almost" achieved the target of ensuring separate toilets for boys and girls in schools across the country, even as he asserted the achievement has instilled self-confidence in people of "achieving any feat".
In his last Independence Day speech from Red Fort, the Prime Minister had promised to ensure separate toilets for boys and girls in schools across the country within a year, as lack of such facilities were keeping girls away from schools in many pockets of the country.
"When we took up the work and team India realised its responsibilities, it was discovered that there were 2.62 lakh schools where over 4.25 lakh toilets are needed. The figure was so big that there would have been requests to extend the deadline.
"But see the resolve of team India. No one put up such a request and today on August 15, I congratulate team India that they have respected the tricolour and have left no stone unturned to realise the dream and almost accomplished constructing the toilets," Modi said in his speech today.
According to the HRD Ministry's Swachh Vidyalaya portal, which compiled figures from across the country, the 100 per cent target was achieved yesterday.
"This is not about constructing 4.25 lakh toilets only. This is about removing an atmosphere of hopelessness where nothing could be achieved. The toilet construction is a reflection of self confidence where we are second to none and India can accomplish any goal," he said.
On 'One Rank One Pension'
Terming the soldiers as a strength, treasure and energy of the country, Prime Minister Modi accepted that despite his coming to power, the solution for the long-delayed OROP issue has not been found yet.
Pointing out that many governments have come and gone for years and the OROP issue came before each one of them, Modi said the OROP has been in-principle accepted by his government but talk are still on with various stakeholders.
"Every government has even given small promises but the issue has not been resolved. Even after I came, I have not been able to do it till now. Today, I am assuring my soldiers once again... in-principle OROP has been accepted by us but talks with stakeholders are on," he said in his Independence Day address.
Modi stressed, it was not just him promising but the 1.25 crore people strong 'Team India' under the shadow of the tricolour, from the ramparts of the Lal Qila.
He said that the issue has reached the last stages and the aim is complete development of country and justice to all.
"A solution has to be found for an issue which has been lingering for 20-25 years. I expect good news seeing the way the talks are going on. And that is why I again promise that in-principle, this government has accepted OROP," he said.
The Prime Minister said that talks are being held with the stakeholders to work out the nitty-gritty and modalities.
On black money
Prime Minister Modi said Rs 6,500 crore of undisclosed foreign assets have been declared under the compliance window of the new law and the drive against black money would continue despite its 'side effects'.
He said several important steps including agreements with countries like the US for real time sharing of information on Indian nationals holding assets abroad have been taken.
Also, the government has enacted a new foreign black money law with stringent punishments which some have termed as too harsh that may lead to inspector raj.
"Some of the diseases are dreadful, injection is required. Doctors say the injection may have side effects but that is the only cure. People may see problems (in the new black money law) but that is the only solution," he said.
Modi said that immediately after coming to power in May last year, the BJP government constituted a Special Investigation Team (SIT) on black money and later enacted a Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
On Inflation
Despite inflation falling to record lows, Prime Minister Modi promised to continue the war on prices to bring rates further down as a measure to boost economy and provide relief to the common man.
Modi said the inflation rate was in double digits when the BJP-led NDA government came to power in May last year, but a series of measures has since brought it down to 3-4 per cent.
"Despite insufficient monsoon, we have been able to bring down inflation. Inflation was in double digits before we came to power. Because of the initiatives of our government, We have been able to bring it down to 3-4 per cent. We will continue to make efforts to bring it down further," Modi said.
On FM radio auction
Prime Minister Modi said that a lot of pressure was created on him so that auctions for FM Radio are not held but added that now the money gained through this process will be utilised for the poor.
"Right now FM Radio auctions are going on. Many people are upset. A lot of pressure was created on me, that 'Modiji FM Radio is for common people. There is no earning. So why are you going for FM Radio auctions?' A lot of pressure was created and in every way attempt was made to gain my attention," Modi said.
He said that Team India comprising 125 crore people wants transparency and now in FM Radio auctions are on.
"Day before yesterday, when I asked, it had already crossed Rs 1,000 crore and this money is going to be utilised for the poor," he said.
The government had recently begun the process of e-auctions of the first batch of channels under the private FM Radio phase III expansion.
On entrepreneurship and job creation
Prime Minister Modi announced a new campaign 'Start-up India; Stand up India' to promote bank financing for start-ups and offer incentives to boost entrepreneurship and job creation.
He also promised to do away with the current practice of interview-based selections for low-skilled government jobs.
The Prime Minister announced the 'Start-Up India' initiative, which would encourage entrepreneurship among the youth of India.
He said each of the 1.25 lakh bank branches should encourage at least one Dalit or Adivasi entrepreneur and at least one woman entrepreneur.
"We are looking at systems for enabling start-ups. We must be number one in start-ups... Start-up India; Stand up India," he said, exhorting all bank branches to fund at least one start-up of tribals and dalits.
The initiative, Modi said, would give a new dimension to entrepreneurship and help in setting up a network of start-ups in the country.
As part of the Skill India and Digital India initiative, the Prime Minister said a package of incentives will be given to manufacturing units for generating jobs.
Modi also questioned the practice of "interviews" for recruitments even at relatively junior levels and asked departments concerned to end this practice at the earliest and promote merit by recruiting only through transparent, online processes.
On Agriculture and farmer welfare
Prime Minister Modi announced that the seven decade-old agriculture ministry will be renamed as the ministry for 'Agriculture and Farmers' Welfare' with a view to take care of farming community's needs.
Modi stressed on the need to increase agricultural productivity and said the government is making efforts to boost crop yields.
Modi said the government is focusing on raising farm productivity, and providing electricity and irrigation to farmers. He said the Pradhan Mantri Krishi Sinchai Yojana had been launched with an outlay of Rs 50,000 crore.
"We need to increase agricultural productivity and we are working in that direction," he said, adding that focus should be on achieving "per drop, more crop".
To boost the farm sector, the government has already announced plans to spend Rs 50,000 crore over the next five years under the Pradhan Mantri Krishi Sinchai Yojana to improve farm productivity.
Currently, 142 million hectares are used for cultivation, of which only 45 per cent farm land is under irrigation.
That apart, a Soil Health Card scheme has been launched under which the Centre plans to target over 14 crore farmers in the next three years to check the excess use of fertilisers.
On PAHAL and Give It Up call
Prime Minister Modi said the programme to pay cash subsidy to cooking gas consumers directly in their bank accounts had helped save about Rs 15,000 crore by stopping blackmarketing and diversions.
Modi said about 20 lakh people have voluntarily given up subsidy on LPG, helping widen the reach the scarce fuel.
The Direct Benefit Transfer on LPG, which has been recognised by the Guinness Book of World Records as the largest cash transfer programme in the world, has eliminated "middle-men and black marketers" and ensured the fuel is delivered to right people, he said.
Since the launch of DBTL, now named PAHAL, domestic LPG all over the country is sold at market price. Households get cash subsidy in their bank accounts to make good the difference between old subsidised rate and market price.
"We brought DBTL and took advantage of bank accounts opened under Jan Dhan Scheme and Aadhaar numbers to give subsidy straight to consumers," Modi said.
DBTL has stopped diversions of "about Rs 15,000 crore of LPG every year," he said.
Out of 15.65 crore active domestic LPG consumers, 13.8 crore have joined the DBTL and are getting subsidy in their bank accounts.
Modi said he had requested the well-off people who can afford to pay market price, to voluntarily give up their subsidy to help extend its reach to the most needy.
"20 lakh people have given up LPG subsidy voluntarily," he said. Middle class families and teachers are among the people who have left subsidy.
Assuming that each of these consume an average of 8 cylinders per annum and at the average subsidy rate of Rs 200 per bottle, the saving amounts to about Rs 320 crore.
