Keeping HAL’s unions happy is NOT in the national interest. Building up cross spectrum capacity in the private sector IS.
Well guess who benefits the most from HALs LCA or Do 228 productions? Privat Indian industry! Because HAL is outsourcing production parts. But that only is a solution for minor manufacting jobs, where is the private player, that has invested into own R&D in aviation so far? There is non, other than Mahindra, who took over foreign aviation companies, to get into the civil aviation market, but that's it!
India in the aviation field is dependent on HAL, as long as there are no alternatives like there are in the naval field, or in the howitzer field now.
That's why large scale aviation projects like MMRCA, FGFA and MTA were crucial not only for HAL, but also to improve the rest of the industry also nd push interest to own investments into the field. While basic offsets of the Rafale deal, won't make India any more capable, that's why the NDA government also needs the 114 fighter deal, to gain real ToT and know how, that the bad Rafale deal didn't provided us.
There is no denying that HAL has it's problems, but there is also no denying that India has no alternative today and that it's an outright lie, that this government is supporting HAL in any way!