Parrikar was speaking at a seminar on 'Indian Maritime Environment & Capability Requirement' organised by the Confederation of Indian Industry (CII) in Panaji.
"I have not understood one thing about Navy and which I have asked every Navy chief that why do you insist on sitting in Delhi, where there is no sea," Parrikar said.
He said that he had always believed that the Navy should have headquarters somewhere in Mumbai, Goa or Visakhapatnam or any other place, but not in Delhi.
Parrikar praised the Navy for providing the best meals as compared to the other forces.
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"The food is best served by the Navy," Parrikar said adding that the logic is very simple.
"That is the only entertainment on the boat," he quipped.
"When you go for months together on deep sea voyages, particularly on submarines for 30 days, 60 days. I think if you don't give good food, there will be mutiny," he said.
Parrikar said that the Indian Navy should also show confidence in the country's industry in terms of equipment manufacturing.
"Equally important is naval officers having confidence in Indian industry and Indian technicians...I found many times they were reluctant," he said.