Indian Prime Minister Narendra Modi said he wants to forgive students who hurled insults at him during protests last month, arguing that repeatedly forcing them to appear in court would do little to ease tensions or resolve the crisis.

The biggest political challenge of Modi's third term peaked in July after leaked national exam papers forced authorities to order a retest for 2 million students, sparking widespread outrage over limited opportunities for young Indians.

Authorities filed cases against hundreds of demonstrators after some clashed with security forces and chanted abusive slogans directed at the prime minister.

"These are misled children. Showing them the right path is our duty. Punishing them, making them run around courts or tormenting them in society will not change the situation," Modi said in a video posted on social media late Friday.

"I want to forgive them. I hope society also accepts this stance of mine."