Careful observers should treat Tejas as an instructive lesson rather than a joke. The high unit cost of Tejas is attributable to the following:
1. 100 million is probably not the incremental unit cost. It is probably a prorated total program cost. The Indian air Force needs to account for the entire development cost. However A fighter jet or any other merchandise can be sold profitably at incremental cost as bulk of the other program costs is already sunk. So if Tejas goes on the export market, it won’t be sold at unit price of $100 million.
2. Tejas is a textbook example of a meandering pursuit of technological sophistication well beyond a country’s actual technical capability. Tejas’ overall performance specification was modest. But the Indians insisted that the modest performance nonetheless be achieved with the most state of the art approach in all areas as a way to create a Big Bang to increase the sophistictiom and state of technology of the Indian aerospace industry. In this it was partially successful, albeit at the cost of an extremely long and costly development cycle that produced an modest product in the end.
Depends on what the original intention and objective of the program was. If it was slated to be entirely indigenous and only for domestic consumption then any foreign buys would just be pure opportunity cost/profit even if sold at a baseline incremental unit cost.
However if the Indian government had intended or set expectations for both domestic and the export market then I presumed they would have done the math to include foreign sale revenues into their initial expenditures.
If so, then they will most likely taken into account the R&R, development cost etc of the program i.e sunk cost. If that is the case then they would have to sell it at an average per unit cost otherwise they will run into the red.
At any rate I agree with you in principle. I think this program was too ambitious for the Indians at this point in time to go at it primarily alone. They would've been much better off partnering with another consortium or multinational.
With that being said, there is something to be said and gained from acquiring tribal knowledge of jet fighter development. Even if Tejas turns out to be a lemon, a very expensive lemon even, the knowledge and skills acquired would play a key role for their future domestic fighter programs.