They never canceled the Kaveri. They simply couldn't get the thing working properly.
While their foresight is lacking in many things -- like not funding a program to develop a transport, for example -- it's not really the case with Kaveri.
In the Kaveri, they funded it since the 1980s. It is their inability to develop and manufacture that's the reason here.
Just a casual glance at their reporting on the thing tells me they are funding a 4-decade-old dud not that they've given up on it. It us literally their singular engine project.
I think some Indians self-flagellate on how the Kaveri was undersupported or whatever so they can ignore the elephant in the room -- and that is they simply do not have the technical ability develop and manufacture a aero-engine locally.
The Kaveri began at the same time as the WS-10. They are both live programs. The difference is the WS-10 follows a Chinese path of progression while the Kaveri follows an Indian one.
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