Parrikar, who was presenting the 'Raksha Mantri's Awards for Excellence 2012-13 and 2013-14', said he will include private companies for the awards from next year lest it become a "decorative PR exercise".
"It is not possible to eliminate imports totally. The present government is concentrating on efforts to indigenise," he said.
Defence public sector undertakings and ordinance factories will have to gear up and contend with private players, he said, adding that, for this, they have to become more efficient.
Flagship defence PSU Hindustan Aeronautics Ltd (HAL) won the Raksha Mantri's Award for Excellence in Performance, Innovation and Indigenisation.
The award for Excellence in Performance under institutional category for the year 2012-13 was given to HAL.
Parrikar was speaking on the sidelines of an IAF event.
Meanwhile, reacting to Sonia Gandhi's rejection of charges related to the case, Union Minister Rajiv Pratap Rudy today said she should ask the Italian court why her name and names of senior party leaders have come out after two years.
He said Sonia does not have to be afraid as all the facts are in the open.
"She is absolutely right. There is no need to be afraid, facts are all there. Let the country know about it. All the facts are in open. There is no possibility to hide anything.
He further said, "Notices have been served by BJP MPs Anurag Thakur, Meenakshi Lekhi and Om Birla on it. Once the motion is accepted, the Defence Minister will reply on it in Parliament. All the facts would be there and the govt is going to act."
When pointed out that Gandhi has alleged that BJP is indulging in character assassination, he said, "It is for the Italian court to respond.
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