I am assuming the government does not fund the design and building of prototypes by private firms in India, such as moving to Make II and skipping a funded prototype competition for FICV.
1) Tata SED, L&T & Godrej created many of the complex engineering + Digital + Electronics systems for all the forces. Now few more pvt companies like Alpha, VEM , TONBO are doing a good job.
2) There is a distinct difference between DPSUs formed Pre and Post 1947. BEML, BDL , BHEL etc work like a private companies. work culture is not different from private institutions. These companies have created some excellent products over the years.
3) majority of the complaints we hear are about OFB, because they control majority of the chunk of equipment for IA. OFB was formed Pre-independence.
you also have to take into consideration that major roadblocks have been cleared only 2017 as per DIPP 2016..
Five more years and budget constraints will be re-solved.. Infact pipeline for next five years is more or less set for all forces including strategic command.