Prime Minister Narendra Modi on Monday called for "cooperative competitive federalism" where states seek to outshine each other on the development front.

"Programmes can be different, working style can be different, but dreams for the country cannot be different," Modi said, referring to federalism in his Independence Day address.

He said if states move shoulder to shoulder, dreams will come true.

Modi recalled when he was the chief minister of Gujarat, the party in power at the Centre was different, but he moved ahead with the mantra of 'Gujarat's development for nation's development'.

He said there are several states which have helped the country move ahead which gave strength to federalism.

"It is the need of the hour that besides cooperative federalism, we need cooperative competitive federalism. We need competition in development," Modi said, adding that states should think of outshining each other in development.

He also felt there was a need for an environment of competition among states and various units of the government to achieve newer heights of development.

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