GOI can burn money - if it feels that technology and stream is needed to support its long term goals. case in point FBR and research in 3stage nuclear processing program in India. Space research etc etc..
Thats why you have DRDO as public enterprise. Now coming to synergizing research unit and manufacturing inc as one This is precisely what being implemented. Now DRDO once develops a product & is accepted by Armed forces - ropes in a manufacturing unit(pvt or public) with whom it works closely in productionizing product. "Productionizing" a Prototype or Lab product is another whole different ballgame which needs Research of its own. Thats why DRDO hand hold production. Once industry is confident they stream roll. Case in point ASTRA Microwave. They were given ToT by DRDO, handheld by DRDO in productionizing Radars in initial batches. now they are spinning their own products.
Spending money to develop FBR or Nuclear program not a waste of money or burring money, its a necessity for securing future of India's energy sector and there is no alternative, its about survival on the other hand Elon Must not a necessity for US. Just imagine India without nuclear power and US without EV
''synergizing research unit and manufacturing inc as one'' and one org for research and manufacturing two different thing, best ex is Dhruv and tejas, Dhruv is a successful program with 100s flying in 4 different versions on the other hand LCA is under final testing stage, same with most of drdo products, worst ex is nag & namica
In the case of astra - consider my earlier post
''it is clear that due to lack of Early industrialization Advantage & zero exp, our private need to build up both, before burning money, and experience is key and gov need to pay all funds, "
Some private/public sector using foreign or gov R&D to produce products and in future they follow HAL/CSL./MDL path, funding their own R&D using profits, but now they need order to recover the money used to set up manufacturing unit and tech acquisition, In one way or another GOVERMENT pays 95% of money required for everything except marketing/bribe, doesn't matter its private sector or gov or public
Counter Q- Why private sector need to do R&D when majority of Gov DPSU, OFB etc depend on foreign and DRDO labs for R&D