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Indian armed forces currently import about 80 per cent of its weapons, platforms and systems.
Noting that last year's Mumbai terror attack brought out the extent of damage inflicted on a nation's economy and society, the Defence Minister said it was extremely important for the armed forces to "maintain eternal vigil" at all times.
Post 26/11, Antony said, the government had beefed up coastal security through acquisition of new systems and platforms.
Coast Guard, which plays an important role in coastal security, had set up a GPS Fisheries Alert Systems for the safety of fishermen, he said.
Antony said Coast Guard should complement the Navy's efforts in providing aid to merchant vessels and also check smuggling, adding the government wanted to equip coastal police stations too.
Regarding the benefits being given to the personnel, Antony said the government had considerably improved the pay and allowances while approving of the Sixth Central Pay Commission, apart from increasing the pension for retired personnel.
"We accord top priority to the welfare of the service personnel, as well as ex-servicemen to boost their morale," he said.
Recently, the Defence Minister said, the government set up the Armed Forces Tribunal, which would exclusively deal with pending court cases relating to services and welfare of personnel.
The Tribunal would have its principal bench in Delhi and eight other benches across the country. Regarding women personnel, he said they were granted permanent commission in non-combat roles.
"Changes like these require a changed mindset," he added.
Antony said the government laid emphasis on further improving the living condition of the armed forces, adding that 1.98 lakh dwelling units at a cost of Rs 17,358 crore were to be constructed in four phases under the project.
"In the first phase, 57,875 dwelling units are to be constructed, of which 39,693 have been completed. Construction of 66,727 units at Rs 9,396 crore under the second phase is to be taken up this year," he added.