Dude my query is very specific. You have claimed that if 2000 atags are ordered instead of 100, price will fall by 80%. I am simply asking you to provide me a single instance of whenever it has happened for any weapon system.
The economy of scale reduces cost of production for the manufacturer. It is not necessary that the manufacturer passes on the benefit of cost reduction to the end user. Any cost reduction needs to be looked at from the view of manufacturing cost and not sales prices.
The foreign manufacturer can very well bulk-manufacture at a low cost and sell it at a high profit margin to foreign buyers, like an iPhone. What
@Advaidhya Tiwari is saying is correct. The US bloats its currency so it appears like American and foreign users are getting the weapon at the same price, but the American Army is not affected by the bloating since the currency is printed inhouse. This bloating is entirely subsidized by other countries whose currency is getting devalued to shoulder the burden of the forex manipulation. In layman terms, the foreign buyers are paying not just for the weapons they buy, but also for the weapons Americans buy. All their have to do is print more $ and our forex reserves are depleted every time we import more. Forex depletion affects other things like food security and energy security. These are the things governments have to balance while making purchase decisions, that's why these decisions are always political.
When everything is inhouse, and manufactured in bulk, it becomes very very cheap for the manufacturer (he can still keep it costly for the buyer, like Israel and USA does to us). For inhouse bulk production, one gets to shave off the profit margins applied at every stage of the weapon, from raw material to final product. A simple AK47's price fluctuates between 3k rupees and 50k rupees based on which vendor you buy it from. The quality difference is marginal, but the price difference is exponential. The price difference is purely a margin play. The more they manufacture, the cheaper it is for them. Consequently, ex-Soviet countries where all the manufacturing plants were originally established in a large scale, were able to mass manufacture AK variants and offer better deals for the same AK compared to the parent Russian org which invented it.
If Indian artillery is not up to the mark, forget DRDO, the Army can handpick an existing foreign artillery system and let Indian companies mass manufacture it. If the end user wants money, let them ask the govt. to do a direct bribe transfer to the bank accounts of Army officials, instead of misleading the nation and then pretending to be offended when civilians point out the anomalies. What is the case being made out here? that the tax payer is an idiot, OFB is stupid, DRDO is a thief, the elected govt. is retarded, the cabinet committee on security is dumb, PM is dumb, NSA is also dumb, but only the trigger puller has amassed all wisdom? This will lead to an Avinash Chander type episode. Even he thought he was infallible. Kept stalling the ASAT project, finally Modi picked him by the collar and threw him outside.