Defence Minister A K Antony on Thursday 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.

"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," Antony said inaugurating the seventh edition of International Land and Naval Defence Systems Exhibition- Defexpo-12, here.

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.

"Enabling policy framework has been put in place to develop indigenous capabilities through harnessing the potential and utilising resources available both in public and private sector," he added.

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.

"Consequent to its finalisation, a public version of the document outlining the Technology Perspective and Capability Roadmap of the armed forces covering a period of 15 years will be published to enable domestic industry to plan investment in the defence sector and take up research and development activity," Raju said.