Union Defence Minister A. K. Antony has said on Monday that the country may increase its expenditure on the defence sector.

The total defence spending currently accounts for nearly 2.5 percent of the country's Gross Domestic Product. The expenditure will rise with the overall growth in the economy.

"The Indian economy is expected to grow at 8 to 10 percent for the next two decades. Expenditure on defence in absolute terms is bound to increase in equal proportion," said Antony while he was inaugurating the sixth edition of the Indian Defence Exhibition.

The minister also appealed to the private sector to make the country more self sufficient. India currently imports about 70% of defence requirements.

"We want public and private sector to work in close cooperation as friendly partners. Our defence industry is open up to 100 percent for Indian private sector while foreign direct investment is allowed up to 26 percent," he added.

Many international firms are partnering local vendors to secure contracts from the sector as India has announced its requirements in the coming years will be worth billions of dollars. India is emerging as the world biggest defence buyer.

A report by the CII-KPMG has estimated that the Indian defence market will be around $100 billion between now and 2022.

The Defexpo 2010 in New Delhi opened on 15 February and will go on till the 18 February. Around 650 exhibitors will participate in the event to display their products. Attendance at the event is up 50 per cent over last year and more than 250 foreign companies will be here.

The event provides a platform to defence companies for meeting prospective offset partners. The event offers facilities for Business-to-Business (B2B) meetings between vendors.

The government has also declared a series of seminars to make it defence policy more clear as required by some vendors.