The answer for foreign manufacturers is to develop an Indian partner. BAE bought a huge share of Mahindra, India’s GE. They build combat vehicles. I tried to get my company, General Dynamics, to develop an Indian partner to modify Soviet built frames up to modern specs. (India has a total of some 12,000 Soviet built frames, mostly in junk yards.) I discovered a complete, tested design to update a T-72 to incorporate most of the M1A1. (GD regularly destroys old data. So they didn’t know they had the design.) The VP in charge kept repeating, “My goal is to sell them Strykers.” My boss told me to give it up.
Selling foreign material in India is problematic. They have one of the most bureaucratic establishments ever developed. Bribes are expected at every level. The culture difference is huge. It’s hard to find the decision maker.
Also, India’s leadership may find they simply don’t have the authority or power to impose their buy-Indian philosophy.
Interesting contrast...when the Wright Brothers were trying to sell their Wright Flier to the French government (because the US government so studiously ignored them, even though their patriotism compelled them to try repeatedly before offering it to a foreign buyer) they had trouble because they simply couldn't get the right people on board, not being French, and being completely ignorant of the methods required, which was bribery of officials.
When a knowledgeable French official (who was an advocate) told him to simply increase the cost he charged for the plane by the amount needed to bribe the right people to move things forward, he was disgusted and offended, and said in no uncertain terms he would rather lose the sale.
I rather suspect attitudes have changed in America since then, but...it is a telling example of what set America apart in the past.