No one here is saying India has the technological prowess on par with US, Russia or China. I openly admit India is far behind in terms of defence tech and research. Even though my countrymen mock China for reverse-engineering Russian tech, they reached a level where they're able to develop new tech from what they've learned. Years of bad governance, mismanagement of projects & funds, sucking up to foreign firms in favor of commissions & kickbacks which still exists resulted in where we are now. Our PSUs have sucked big time with firms like HAL, OFBs and even DRDO recruiting engineers & scientists based on reservations and favoring a particular sect of people who are incompetent AF. I interned in a non-defence PSU in central India and all the employees did was to drink gallons of tea and chat about every useless topic that ever exists.
Thankfully, the situation is improving with MoD allowing private firms to participate in defence contracts and removing the unilateral advantage that PSUs had all this while. No wonder companies like Tata & Reliance partnered with LM, Boeing, Airbus, Sikorsky etc and building top end tech like the fuselages of Apache, Chinook, US presidential choppers, S-92 and many more by setting up defence manufacturing hubs in Hyderabad, Bangalore & Pune primarily.
There's still a lot of changes that are to take place for our organizations to come up to speed and be on par with Russia & China. Accountability of utilization of funds is another important factor and also the % allocated to research which is very less in India