In an address at the bi-annual conference of IAF commanders, the defence minister also said that the powers given to the service chiefs should be "fully utilised" in achieving required capabilities of the forces.
Inaugurating the conference, Sitharaman also said that the budgetary allocations "should not be viewed as a constraint and should be looked at to acquire what is absolutely necessary," the IAF statement said.
Sitharaman said the IAF along with the DRDO and the Ordnance Factory Board, a state-run defence equipment maker, should make an assessment about the possible areas of indigenisation under the 'Make-in-India' programme.
In his address, Air Chief Marshal Dhanoa emphasised the need for continuous effort and training to maintain IAF's air power, and called for continuing the process to enhance capability of the force.
He also reiterated the IAF's role as the first responder in most contingencies and thus the need to sustain the ongoing process of capability enhancement making use of the government's thrust on the 'Make-in-India' initiative.
The IAF said the conference will deliberate on a raft of issues which will decide the future trajectory of the force.
It said deliberations will take place on operations and maintenance issues.
Various administrative initiatives were also expected to be taken at the conclave to enhance the working environment of the IAF.
In sync with the government's digital India initiative, two mobile applications for Air Force Cellular Network (AFCEL) phones will also be released during the conference, the IAF said.
A book titled 'Aero India- Ascent through the ages' was also scheduled to be released during the conference.