Speaking to a crowd of over 200 people in Tredegar, Blaenau Gwent, he said he admired Welsh Labour's record and would like to "narrow the red water".
Mr Corbyn praised Welsh Labour for removing internal competition in the NHS and pledged to boost rail services.
He said he hoped to meet First Minister Carwyn Jones soon to share ideas.
The second day of Mr Corbyn's campaign visit to Wales ended with a rally in Cardiff on Tuesday evening which was attended by about 1,000 people.
Earlier he addressed supporters in a gathering at the memorial stones to Welsh Labour hero and NHS creator Aneurin Bevan in Tredegar.
He praised the work of the Welsh Labour government in Cardiff Bay.
"I've been looking at their economic planning ideas, looking at the way they're trying to promote industrial development in Wales," he said.
"They need more powers in that area.  They also need more resources, particularly in infrastructure improvements.
"If you want to have a growing economy, a better industrial economy, you have to improve the basic infrastructure, which is in main rail but in part road as well," he said.
Mr Corbyn said he was keen to forge closer links between the Labour parties in Wales and Westminster, saying he knew the former First Minister Rhodri Morgan well.
He said he had admired Mr Morgan's attempts in office to create "clear red water" between the former UK Labour government's policies and a more traditionally socialist direction in Wales.
"Maybe we can narrow the red water and we can walk across it," he said.
Mr Corbyn said he was "absolutely" ready to meet First Minister Carwyn Jones, as the other three leadership contenders had done, when they were both available.
Andy Burnham, Yvette Cooper and Liz Kendall are also contenders for the Labour leadership, with the winner to be named on 12 September.
Labour leadership contender Jeremy Corbyn has called for closer links between the parties in Westminster and Wales.