Let me start by saying Thanks for responding and in a way that makes some sense, but there are few points I agree and few where i disagree
The whole point of make in india is that the resources of indians will remain with indians and there is no need to give away resources to others. Since, no resource is going out, we are having 0 cost..
Make in India is definitely a good thing and yes it does help by creating jobs and generating revenues. There is nothing like 0 cost there is always a cost. Cost to an exchequer for one aircraft Made In India can be 50 Mil and if the same if imported from the other country it might cost 30 Mil. Why ? once we plan to make something we need to have infrastructure, technical shill and know how.If we are developing it then there will be huge R&D cost and not to forget the time span required to develop a particular tech. The world is a global hub and it changing everyday, given the current scenario we have a Gen4 A/c with us but the world is at Gen5. Developing Stealth on our own si gonna take a lot of time.
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We cannot develop everything in house. That's not economical. As i have stated in the past as well 60-65% should be indigenous.
Of course, certain things like oil, minerals, rare/exotic metals has to be imported and hence there is some cost involved and not exactly 0. But this cost arises because we are not using fully indigenous items (even though metal, oil are raw materials, they are still imported materials).
Like I said it cannot be 100% indigenous in the current global world scenario.You are referring to things which do effect cost but not at large talk about the aircraft engines for Tejas alone they are gonna cost us alot and that is a huge %.
So, what is money? It is the share of the available resources in today's time. The same job may have fetched little money in 1970 but fetches several times more today and that is because resource exploitation has caused abundance of consumption oriented resources.
I did not get what are you trying to convey with this scenario?
Rupee is just a convention used to make it easier to be objective in assigning figures and values for various resources within india. Since, govt is controlling the rupee, it can print the money, decide on what share of the money comes back to it and from which activity (taxation) and then decide whom or how to distribute the resource. So, the government can simply manipulate the money flow and then get the work done free.
Thats again not true if you keep printing money the economy will collapse.Govt can print and Tax the money Yes but it cannot control its flow.
For example, govt needs to buy guns. It will hire 1000 employees to make guns indigenously who will be supplied with money (salary) and raw materials. Now, the metals will be obtained by miners who will pay a part of the produce as tax to govt which in turn is used to buy up the same metals and these people are then taxed 30% income tax on salary. Then tax can be raised on various services and goods including agriculture produce and rest of the money paid off.
but they will cost us more than rest of the world + you do not have everything in house if that would have been the scenario there would have been no Dollar ratio in place
Ideally, agriculture income can also be taxed
Do not want it to happen
but is not being taxed as of now due to agriculture being declared as necessary for food security and politics. But if situation changes it will be taxed. Agriculture has been the main source of income for states for over 10000 years and can be again. When politics prevent tax, rupee can be printed, adding to inflation (indirect tax on savings money).
We still have people in our Nation who cannot afford meal and farmers committing suicide this should not happen.
Points:
1) There is never "0" cost. There is success and failure, in R&D failure being part of learning also has a price of its own.
2)Assembled product:In house Production costs more due to Infra, resource, technical labour, Supply Chain etc.It is done to get transfer of technology which also adds to the cost.Rafale was costing us more when built in India as per various reports.
3)Product developed in house have development cost involved along with the time frame taken to develop it. Tejas took 25+ years for example so that in a way means we are 25+ years behind world as they started Gen 5 back then.
4)We are still not able to get FOC.
5)The numbers required cannot wait for the local defense industry to mature.
As I have always said that we can maintain a balance but we must get the indigenous % to 60-65%. If we are unable to build bigger itenaries we must focus on small products.