Wow! Can you post some reading material about this? Do you have any?
As for arms lobbying, this will sadly continue until the government does something to keep retired soldiers busy. You see, they give their lives and are suddenly left to fend off for themselves with a measly pension that does not address their needs enough (in many cases). We have to live with this fact that some people are more materially ambitious and even if there was a way to 'deal' with them, we cannot get rid of them for good.
There is a middle was of resolving this arms lobbying and making them work for India.
- Legalize private arms ownership - liberalize it from its current state but make it more stringent than the madness of USA (the clause should be Indian-made weapons only)
- Legalize private military corporations where retired military folks can start working. Criminalize their operations inside India, but let them work world over. This will allow them to earn good & at the same time keep busy rather than becoming devils on their own.
Effects of (1)
a) This would lead to a drastic drop in the cost of making weapons & small arms ammunition. It might result initially in a spike in crime but when most people will be armed, no one will dare to shoot each other.
b) State police will be able to significantly arm up as the economies of scale of manufacturing weapons would be cheaper.
c) Retired military personnel can actually make money without affecting the nation's security
Effects of (2)
d) Extension of 1C above - jobs, specialization and a strategic ecosystem. Basically, these ex-military folks can found private military companies that will allow the government to contract a lot of 'unofficial' stuff to them. Money will be made, objectives will be met & national interests will not be compromised like this.