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I agree. I think that GOI is not sufficiently dumb to fail to have realised that it doesn't work. But GOI seems to prefer retaining a system that does not work rather thanOne of the thing that AP Sing told recently is that it is not a matter of budget. The organisation of your own industry dies not allow you to built a large amount of planes. It told exactly that they return money every year because they can't spend it.
He was pretty clear about the inability of HAL to deliver planes on time.
So even If IAF decided to go for 200 Tejas instead of 40 when the initial order was placed in 2005 (20 years ago !) the issue for the Air force should be the same right now.
And if HAL was able to build them, the situation of IAF would have been very different, with no urgent situation and... No need to buy foreign fighters.
So it's just simply doesn't works
(a) shake HAL up so its performance aligns more closely to the performance of comparable aerospace companies
(b) allow/enable a competitor to HAL. Its performance would likely align more closely to the performance of comparable aerospace companies
(c) ???