Well what would you do in their place? They're trying to protect their business. It's for the GoI to have a vision about the organization else do the right thing & make them truly autonomous instead of the sham autonomy HAL enjoys now.
Me? I'd lobby to keep the foreign mfgr out on the grounds of it being an unproven product. The Russians themselves only have a handful of these birds in service.
I'd ideally look for opportunities to co-develop a higher tier product with Kamov that didn't directly compete with my own and that too in a captive/monopoly market. Perhaps the Ka-28 successor design that Kamov is supposedly working on.
I see no point in this as HAL has already matured sufficiently as a hptr OEM. The only way forward if at all would be to collaborate with European / US hptr OEMs in technology like coaxial / contra rotating main rotors eliminating tail rotors entirely.
HAL has its hands full with LUH, IMRH etc. I doubt they'd have the bandwidth for R&D on tiltrotor/compound helos like those being developed by the US and China.
HAL is currently coasting along by adapting the core ALH design into light, medium variants. In terms of design innovation, there is little that LUH, IMRH bring to the table.
What for? HAL is already past that stage. They ought to be focusing on development of a marketing team to sell civilian versions of the ALH & the upcoming LUH apart from future variants & new models.
Not HAL, Tata. Rather than mere license assembly, they could've leveraged massive India's market size to negotiate IP/design rights transfer with Airbus/AW and built on it to create a local design base.
But yes, GoI would have to put it's weight behind them too.
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