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Not really. A lot of Venture funded startups are all about R&D. They are not about profits. Most startups go IPO despite massive losses. Most technology startups including Amazon had massive losses yet had successful IPOs. If India’s private companies can come up with a viable, high quality, price competitive military-grade drone, funding would never be a problem. I have a feeling that companies like TASL/TBAL are developing expertise at a very fast rate, thanks to their international joint ventures with Boeing, LM, Raytheon etc. . Many private aerospace companies in Bangalore are also developing pretty good expertise. There are pretty good chances that the private sector may trailblaze in India, thanks to the opening up of space and defense sectors to the private industry. It is the dawn of a new age for us where inefficient PSUs may fall by the wayside.
Every company works for profit.
Aerospace and aviation requires massive infrastructure and certifications. Since companies don't have humongous capitals unlike their governments, they are always engaged with their governments at various levels. Most of Indian aerospace start ups are dependent upon the base provided by PSUs, DRDO and ISRO and only have been suggesting innovations and improvements
A start up based on IT services like Flipkart or Zomato have a relatively a more secure future in a net-integrated consumer economy with high population like India. They weren't gambling while investing.
It is the dawn of a new age for us where inefficient PSUs may fall by the wayside.
PSUs won't wall unless India decides to become stone age. They are the generators of tech.
You have to understand that a private organization only works for its profits while a PSU works for the political motive of governments across the world. Privatisation is not a magic. Applying whip produces more efficiency as in private sector but efficiency production isn't a thing in process of R&D, development and hit-trial. They need unlimited funds, great facilities and cool minds. Hurrying up gives results in production, not R&D since you don't know hurry for what.
Exceptional companies like Lockheed, Boeing, Airbus or Hyundai etc. receive heavy funds from their governments for development. Their trade is highly regulated and restricted by their governments, they even receive direct orders without bidding. They have perks any office in their governments enjoy.
So, these companies have become more like privately-owned PSUs. Our journey in modern aerospace sector started just in 2000s.
There is not even remotely a private company in India capable of competing with PSUs in unmanned or manned aircraft development.