That is true, but in India there is no private but foreign that comes with arm dealers..
But You see this is another problem. Goverment and Army starts Arjun program, and that's all, they should say " we start new MBT Arjun program and we will be happy to see different companys offers, then we start evaluation of each offer and choose the best one, one of the most important factors will be transfer of technology and production line in India" and that all. Nobody really needs here a state owned design bureau.
In open competition many companys would be even happy like little kids with new toy, to present their product and compete with each other. As far as I recall You got the same with new fighter jet yes? And wheres problem? Nowhere, you will get new jet choosen in open competition.
And open competition does not mean that state owned design bureau could not also participate, they can, and open competition would force them to do things better, to do them on time and what is more important, they were be abale to see what other have and learning by observation, design their product by incorporating some of solution used by others.
Look at GCV program, it is rather obvious that US will not buy SPz Puma or CV90, they will definetly buy something US made, but open competition gives them opportunity to evaluate these vehicles and if nececary adapt usefull design solutions so there will be costs savings and time savings. There is no purpose to reinvent the wheel if someone else allready invented it.
In fact by observing current situation I think that in future nobody will care about developing each component of vehicle from scratch if there are such components allready avaiable on market, You just buy a licence and manufacture this component in Your factory. The only thing that can be completely new will be vehicle structure, outer shell and eventually components that will need to be designed from scratch.
Even US seems to just buy a licence and manufacture Diesel engines designed in Germany (why not, these are good engines) than make their own, even if they have very good Diesel engines, and also very powerfull like the latest 1500HP AVDS-1790 variant. Also US spent enourmous pile of money on developing engines, due to budget cuts they never went in to production but were ready for it... unfortunetly, but as it seems there is no sense to make something on Your own when You can buy it and build it.
Impressive the way it is put, are you sure that is Ukraine not IMI..
As I said, T-72 with green paint is Ukrainian, T-72UA4, the tan painted one is Kazakhstan T-72 upgrade, and there is also upgrade developed amon many by Israel designated T-72KZ, so Kazakh Army is offered with 3 different upgrades.