Bhamre's comments came two days after the security forces killed six Lashkar-e-Taiba (LeT) militants, including the nephew of Mumbai attack mastermind Zaki-ur Rehman Lakhvi, in north Kashmir's Bandipora district.
"Our policy is is clear. There is zero tolerance for terrorism. We are going to stop cross border infiltration of terrorists. Our Army is trying to flush out terrorism from the Valley," he told reporters on the sidelines of an event.
Earlier, speaking at a gathering of defence attaches of around 70 countries and captains of India's defence industry, Bhamre said the government has been "tirelessly" working towards making up for critical shortages of the armed forces.
The minister said the government was spending billions of dollars on acquisitions from abroad and 20 to 25 per cent reduction in imports could directly create additional jobs in India.
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"This is why defence is at the heart of our 'Make in India' programme. We have reformed our defence procurement policies and procedures," he said.
Bhamre said there is now clear preference for equipment manufactured in India.
"Our procurement procedures will ensure simplicity, accountability and speedy decision making," he said.