Defence Minister A K Antony today said that expenditure on defence is bound to increase as the armed forces need to have access to the latest technologies and equipment to counter any threat. Inaugurating the seventh edition of International Land and Naval Defence Systems Exhibition- Defexpo-12 in New Delhi Mr. Antny said that with the projected growth of the Indian economy expected at a trajectory of 8-10 per cent for the next two decades, expenditure on defence in absolute terms is bound to increase. Observing that the defence allocation has been consistent with the country's needs he said, India's defence expenditure in the recent past has been around two per cent of the GDP, which has been consistent with our security needs as well as our requirement. Underlining the need for indigenisation, he said the emphasis is on the need for public-private sector partnership in the defence industry.

Speaking at the inaugural ceremony, Minister of State for Defence M M Pallam Raju said the government is in the process of finalising a long term integrated policy of the armed forces.