"It is not the question of breaking defence ties with China. We have close ties with China though there could be some problems occasionally," he told reporters after laying the foundation-stone for a expansion project in the Mishra Dhatu Nigam Limited here.
The Minister was responding to a question on whether India was considering snapping its defence ties with China in the wake of the recent misgivings between the two countries.
"Short-term problems would not affect India's overall approach towards China," the Defence Minister said.
His comments come against the backdrop of China denying permission to Northern Army Commander Lt Gen B S Jaswal to visit that country as he comes from the "sensitive" Jammu and Kashmir area.
Asked if foreign direct investment cap in the defence production sector would be enhanced to 49 per cent, he said, "We have now allowed 26 per cent FDI in our defence production".
He noted that India’s defence production was improving but there was still scope for improvement.
"Our main target is to develop India into a strong base for defence industrial production.We are not restricting this area only to the public sector and we will be supporting the private sector as well. But we must also encourage the public sector," the Defence Minister said.
Asked about the adverse observations made by the Comptroller and Auditor General in the latest report on defence-related issues, Antony said, "We always take CAG's observations positively. For that we take any criticism by Constitutional bodies and even media positively. But, forget about the past".