"If you look at the neighbourhood, as the international forces are withdrawing from Afghanistan, there is an increased perceived threat (to India)," he told reporters on the sidelines of a function here.
"There are also challenges before us like resolving border dispute with China and the constant needling going on from Pakistan. So, these are real issues and we have to be prepared (militarily) and have deterrent capabilities (to ensure there is no breach of security in the country)," he said.
Raju also said the country should prepare to face challenges of cyber hacking and mal-hardwares for ensuring security.
Responding to a query on acquisition of 126 medium multi-role combat aircraft (MMRC), he said negotiations were still underway and it has to pass through the Finance Ministry and then through Cabinet Committee on Security for approval.
"We will acquire MMRCs as soon as possible after completing the formalities. It is right now with the Defence Ministry," he said. (MORE)