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In a televised address to the nation, Modi said implementation of the lockdown will be strictly ensured in coming days to ensure that the virus does not spread to new areas,
The prime minister said detailed guidelines on implementation of the new lockdown will be announced on Wednesday.
Some relaxations may be allowed after April 20 in places where there is no hotspot, he said.
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Modi said India received huge benefits from the 21-day lockdown in checking the pandemic and added that the country has dealt with the situation better with limited resources.
The lockdown that came into effect on March 25 was to expire on midnight of April 14.
The drastic measure shone the spotlight on the miseries of lakhs of migrant workers whose journeys on foot from several urban centres to their villages hundreds of kilometres away grabbed headlines for many days last month.
The catastrophic effect of the lockdown on the overall economy and livelihoods of lakhs of migrant workers triggered severe concerns following which a number of chief ministers in their video conference with Modi on Saturday sought some kind of relaxation for a number of sectors.
Late last month, the government announced a Rs 1.7 lakh crore package aimed at providing relief to those hit hard by the lockdown as well as an insurance cover for healthcare professionals handling virus infected people.