With a view to encouraging domestic manufacturing of defence equipment, Gujarat Chief Minister Narendra Modi today said his government is contemplating a manufacturing policy in this regard. "The country is spending huge amount on import of defence equipment. The Gujarat government is planning to come out with a policy for manufacturing defence equipment in the state, Modi said here at an award function. The industry department in a discussion paper in 2010 had proposed to raise FDI in defence production to 74 per cent from the current 26 per cent, saying it would help ensure technology transfer and funds to effectively replace imports. India is one of the largest users and importers of conventional defence equipment and ranks among the top ten countries in the world in terms of military expenditure. India opened up the defence equipment industry to private sector in May 2001. The country imports over USD 8 billion worth of defence equipment and its defence budget is growing at 13.4 per cent annually since 2006-07. According to estimates, nearly 70 per cent of India's defence requirements are met through imports. Apart from defence PSUs like Hindustan Aeronautics, Bharat Electronics and BEML private players such as Mahindras, Tatas and Pipavav Defence and Offshore Engineering Company are domestic defence equipment suppliers. The central government's stated aim is to reverse this trend and manufacture 70 per cent or more of its defence needs indigenously. India spent over Rs 4,42,000 crore in the last ten years on procuring defence equipment for the armed forces from both foreign and Indian players. 'Gujarat Contemplating Defence Manufacturing Policy'