Incentives like being completely self reliant in most area's of defense despite being a strong American ally. South Korea acknowledges the possible North korean threat, and an indecisive decision by Washington could leave the Koreans stranded to fend for itself for the first few days of war. It knows it cannot 100% only depend on America to defend itself. Incentives like not scamming themselves everytime they want new military hardware, and the latest hardware at that. To Also be competitive on the world stage, and be a world innovator in the arms industry.Incentives like?
Importing everything will never produce a world class military, aswell as costing the importer far more than what it would cost to produce domestically.
What India needs is a more serious bureaucratic system that can completely understand India's current military and political situation. Where if it wants to maintain mostly neutral politically on the global stage, yet still be a strong partner with the US to counter China, it needs to seriously take all threats to national security seriously.
An Arms deal with Washington should signal that India is happy to work with America to counter the rise of Chinese modernization and aggression as well as curb the terrorism efforts of Pakistan. It does not mean India is now a slave to America. Many arms deals are more political acquisitions than strictly for military modernization.
If India has the motivation to become completely self reliant, it will become self reliant whether there is foreign imports or not. However from the looks of things right now, it almost feels like the whole system be it the policy makers or HAL themselves seem to be taking relative peace and small skirmishes for granted. There's absolutely no urgency. Acquisitions are constantly delayed and funding withdrawn with absolutely no consequences to any of the parties.
Atmanirbhar Bharat is clearly very popular so the incentives are already there. What's missing is the attitude to achieve it no matter the cost.