Prime Minister Narendra Modi on Saturday inaugurated the Centre for Gandhian and Indian Studies at Fudan University in Shanghai and said Gandhian philosophy can help in the fight against terrorism and deal with climate change.

"Historic launch of Centre for Gandhian & Indian Studies at Fudan University by PM @narendramodi," tweeted external affairs ministry spokesperson Vikas Swarup.

Two Chinese students recited verses from the Bhagwad Gita at the event.

Addressing the students in Hindi, Modi said the world today is beset with two major problems of terrorism and global warming.

Calling Mahatma Gandhi a "yug purush" and a "yug manav", Modi said Gandhian philosophy can help in the fight against terrorism and deal with climate change.

He said both India and China through the centuries have made huge efforts in the pursuit of knowledge.

"The relations based on the quest for knowledge has beneficial effects for centuries," he said.

Modi said he feels great joy in interacting with students and his China visit has given him the opportunity twice - at Fudan University in Shanghai and at the Tsinhua University in Beijing.