He also said the government was working on a policy under which certain defence industry related items would be banned from being imported to boost the domestic manufacturing sector and hoped that "we will be able to soon come out with it".
Laying emphasis on the need for defence exports, Parrikar said many countries are looking at India for support as they are being "threatened" by others.
Addressing a seminar here, Parrikar said "many of them are threatened by others" and they are looking at India with a hope that it will come to their support in time of need.
"Many of them want to build up their defence strategies. You can develop or support peace... The best peace can come to you if you are strong. There is no weightage of a weak person talking about peace," he said.
More From This Section
"Of course you have to be careful about which countries to export. There are countries that are by nature aggressive. There are countries where conflicts are in such a boiling state, it's a perpetual issue of security," he said, adding one needs to ensure supply of arms to nations or export oriented items are sent to countries that have a sensible purpose of using it.
He said one needs to make sure that arms do not go into wrong hands and gave the example of ISIS, which is using weapons that were given by foreign powers to Iraqi forces.
Without naming China which is in territorial dispute with several countries over South China Sea, the report said, "The contestations over island territories in the Asia Pacific have created tensions in the region and threaten to polarise the Asia Pacific community.