Both India and Russia, he said, could exploit the huge opportunity in the defence sector by entering into joint production for a host of defence product lines.
He said that rather then directly buying (defence products) from other countries, India was more keen in going into joint production or marketing and transfer of technology.
"Russia is a perfect partner in this direction," Mukherjee said. Mukherjee said the UPA government has adopted a new policy of converting buyer-seller relationships into JV partners.
He was speaking at the inauguration of Indo-Russian joint venture Ural India Ltd, which will manufacture heavy-duty trucks required for defence, mining and construction sectors.
Ural India Ltd is a joint venture between Uralaz of Russia, Motijug and WBIDC which would set up a plant on 300 acre at Haldia, about 180 km from here. It would initially assemble Ural brand heavy duty trucks and tippers would be shipped in semi-knocked-down form.
The defence minister said India's budget for defence procurement from other countries was $10 billion.