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I am with @warrenss on this one.Capability building is more important than indigenious development.
At this point in time the Tejas MK1 isnt as capable as F 16 or Gripen E neither can HAL produce it in the numbers required so a 100 to 200 order of SE fighters look inevitable.
Wars are won by capability.
Why not give HAL a limited tender with a strict deadline to follow with the stipulation that heads will roll for any lapse starting from the top? If they can't deliver on time, they must be fired, all of them.