Well they just can't outright shutdown the small arms program? You still have to come up with better iterations to keep that line of products going to build up on previous projects like INSAS. Waste of money? Maybe but the thing is Indian private industry is still not good enough in designing and manufacturing field of small arms and the best worst part being IA itself is not very keen to even support them to create a good base.
A sane logical army would support even a new startup to come up with its prototype, fund it, ensure initial batch with guarantees for scaling up production and quality control. This will take time but still kuch better than waiting a frickin decade for new guns.
Let me share with you a gem which came out of this new small arms program that IA demanded, remember 3 calibres and then MCIWS came out. One of the super duper requirement was Air burst UBGL. Well drdo developed it, successfully tested the ABG airburst induction setting type fuze and the programmer for it, all able to be fitted on present UBGLs, can be modified for other UBGLs too. Guess what, it has been more than a decade of that reqmt and still We don't see anykind of order for that. A tech savy Army would have atleast required a offshoot of that airburst fuze to be integrated with AGS 17/30s for good effect on targets. There was a video of ARDE in which it was shown successfully demonstrated.
All western armies are now adopting airburst grenades for their AGLs more and more. I am quite sure IA will come up 5-10 yrs later with big fat RFI for make in India of these same systems, what a freakin clown show that would be?
Sometimes I think GOI should just create a department whose only goal is to find these self sabotaging efforts and make all these people who come up with these clown shows pay dearly. When you know that your decisions are made accountable and you will be held accountable for it, then perhaps they will be more serious.
But we guys are really something else, from 7.62nato to 5.56nato to a desire of swappable barrels coz some western guys tried to do that and then to combo of all 7.62nato rifles and lmg, 5.56nato carbines and 7.62Rus Aks. Are we really sane or this indian timeline goes crazy and crazy?