Narendra Modi, on his first outing from the capital since he took charge, underlined that Indian arms and ammunition should be exported across the world.
While the Army has been unsuccessfully trying to procure replacement choppers for over five years, an emergency alternative being planned has also not worked out.
MoS for Defence Rao Inderjit Singh said the blanket ban of arms companies has left the armed forces with hardly any basket of suppliers for critical needs.
After cancelling the VVIP chopper deal for 12 AW 101 helicopters earlier this year on charges of bribery, the defence ministry had moved to encash the bank guarantees.