Modi declares India has strength to defend its borders in passionate Independence Day speech

INDIA is strong enough to defend its borders against any threat, Prime Minister Narendra Modi said in an Independence Day speech as the nation faces a frontier showdown with China and aggravated tensions with Pakistan.

"Security is our top priority," Modi told thousands packed into the landmark Red Fort in New Delhi on Tuesday (15) as India marked the 70th anniversary of the end of British colonial rule.

"Be it the sea or the borders, cyber or space - in all spheres, India is capable and we are strong enough to overcome those who try to act against our country," he declared.

Modi, who wore a Rajasthani turban with a long flowing orange train, toned down his comments from three previous Independence Day speeches and did not mention the targets of his warning.

But his remarks came as a dispute between India and China over a strategic Himalayan plateau enters a third month on Wednesday. Hundreds of soldiers are reported to be facing off against each other at Doklam.

The giant neighbours share a long history of mistrust and went to war in 1962 over the Indian state of Arunachal Pradesh.

China's state-controlled media has repeatedly warned that a conflict could break out over Doklam.

India has urged a diplomatic solution to the standoff. The dispute started on June 16 when Chinese troops started to build a road on territory that it disputes with Bhutan. India troops moved in to stop the construction as India is a close ally of Bhutan.

India is also mired in conflict in Kashmir and accuses Pakistan of sending "terrorists" across the border to fight security forces in Indian Kashmir.

Modi, who said he spoke to US President Donald Trump on the eve of the speech, said: "The concern for national security is a natural one in an independent India.

"Our security forces have always shown their capabilities whenever on duty. Whether it is terrorism or infiltrators, our security personnel have always been ready for sacrifice."

India carried out what it called "surgical strikes" in Pakistan in September last year after insurgents attacked an army base on the Indian side of the Kashmir border, killing 18 soldiers.

"When the surgical strike was carried out, the world came to know about the power that India possesses," Modi said in his speech.

He added that "bullets and abuses" cannot bring peace in Kashmir - where there are an estimated 500,000 Indian troops -  but also accused Kashmiri separatists of "scheming".

In his speech, the prime minister also urged India to reject religious violence, after a series of attacks against minorities.

Modi has spoken out against attacks by right-wing Hindus against minority Muslims and lower-caste Hindus accused of killing cows, considered holy by Hindus.

But the setting of his denunciation of violence on Tuesday was significant.

"We will not tolerate violence in the name of faith," Modi said.

The prime minister also focused his comments on efforts to clamp down on corruption and his economic reforms. A year ago, a government move to cancel more than 85 per cent of India's banknotes caused widespread chaos.

He said the move had brought $46 billion of currency into the legitimate banking system.

More than 300,000 "shell companies" funded by undeclared finance had been uncovered through irregular transactions. The licenses of more than 100,000 of the firms have been cancelled, he added.

According to Modi, 1.8 million people have been found whose income outstrips their declared wealth. About 450,000 have admitted their "mistakes," the prime minister added.

"India is celebrating honesty today. The corrupt have no place to hide anymore," Modi said.

Modi also spoke at length about delivering a "new India" by 2022, underlining his confidence of winning the next general election, due by 2019.

He spoke of a country where the "poor shall have concrete houses, where farmer income shall double, where youth and women will get ample opportunities".

"An India which is free of casteism, terrorism, corruption, nepotism. A clean India," he said.

Strong growth and economic reforms have bolstered Modi's popularity and helped his party sweep state elections in recent years, leaving the opposition severely weakened.

To keep up with the demands of India's 1.3 billion people, the government needs to create millions more jobs a year, which it is struggling to do.

Modi also hailed the introduction of a nationwide goods and services tax in July as a success that had doubled the number of new taxpayers this year to 5.6 million - a tiny fraction of India's 1.3 billion.