Prime Minister Narendra Modi said his decision to strip Indian-administered Kashmir of its special status would restore the region to its “past glory”.
He said Kashmir will play an “important role” in India’s development during his Independence Day speech on Thursday.
He said Article 370, the constitutional provision that granted it special status, had only encouraged corruption.
Mr Modi did not refer to the lockdown and communications blackout imposed in Kashmir since the decision last week.
He made the remarks during his Independence Day speech at the iconic Red Fort in the capital Delhi on Thursday.
India celebrates Independence Day one day after Pakistan, which was partitioned from India in 1947.
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