The government is spending 40 per cent of its defence allocation for modernisation of armed forces, Union Minister of State for Defence, MM Pallam Raju, said on Tuesday.
The government has taken steps to modernise Army, Navy and Air Force to meet challenges, he told reporters here.
Thirty nine ordinance units, three shipyards and eight public sector undertakings in defence sector will be modernised and fire control system improved.
Bramhos missile's naval and land version are ready. We are taking steps to develop aircraft version, he said adding, "instead of transferring the new methods from one country (Russia) to another, we can achieve good results if both the nations (India and Russia) cooperate with each other to produce weapons."
The Centre is strengthening intelligence agencies in view of threats, he said.