Jaitley told a conference of top commanders in New Delhi that there was India needs to have a credible deterrence and there was need of continuous capacity building, said defence ministry sources.
They said Jaitley told the meeting that India was living in a troubled neighbourhood and described Pakistan as a "global puzzle" .
He said the security forces have taken effective measures to thwart cross-border terrorism from across the border.
The minister also said that the National Democratic Alliance government was seeking to build good ties with all neighbours.
Jaitley, who is also finance minister, assured to speed up the defence acquisition process and indicated that there would be monthly meetings of the Defence Acquisition Council (DAC).
He urged the armed forces to expedite the technical trials of new weapon systems, while noting measures taken by the government will help cut down on imports of weapons and give boost to indigenous efforts.
Earlier, On Friday Prime Minister discussed the issue with the three service chiefs at South Block.In the meeting, the Prime Minister described his strategic vision straight to the three services chiefs on the repeated ceasefire violations at line of control.
The ceasefire violations have become usual phenomena at border in recent days. And both countries are flexing the muscle on recent flare up. Reportedly, more than 100 border violation cases have come to light.