In his speech at a reception hosted in his honour here on the eve of Berlin Air Show, Antony said the procurement policies have been streamlined and were "transparent".
The policies have been put in place including the requirement of an offset of 30 per cent for certain contracts. This would act "as a bridge between the Indian defence industry and potential vendors, both foreign and Indian, to help private industry to obtain industrial licenses for the manufacture of defence products," the minister said.
Under the offset clause, companies getting any defence tender will have to source nearly 30 per cent of contract from India. However, a company securing a contract for 126 fighter planes will have to source 50 per cent under this clause.
The statement from the minister came at a time when some companies have been talking in private of their inability to meet the 50 per cent clause of offset.
"These policies are designed not only to further develop our capabilities in production of land, air and naval defence equipment, but also to encourage co-development and co-production with international manufacturers," Antony said at the function attended among others by his German counterpart Franz Josef Jung and IAF chief F H Major.
