"We must win the next war with home-made solutions," he said at a conference on defence modernisation at FICCI.
The Army chief also underlined the need for developing an indigenous intelligence and surveillance system to keep a hawk eye vigil on the borders with China and Pakistan as well as to ensure foolproof security at military installations in the hinterland.
In this context, Gen Rawat also spoke about the Pathankot and Uri terror attacks, noting that security at military installations was becoming a matter of concern.
He said the private sector must join hands with the government to find solutions to the needs of the security forces.
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Stressing on developing the domestic defence industry, Gen Rawat said the Army was working with the private sector and academia on developing indigenous systems and platforms.
The Army chief also urged the private sector to utilise its financial resources for carrying out research and development activities, focusing on requirement of the armed forces.