Rohit: I do have an opinionated mindset regarding the IA's step-motherly treatment towards several indigenous products like Nag, Arjun etc. There is enough evidence to substantiate such a mindset.
You may want to read this article: http://pragmatic.nationalinterest.in/2011/03/24/the-reason-we-buy-low-quality-missiles/
Yes - BDL makes the Milan-2T (cheaper than imported Milans for sure) and the MOD arm-twisted the IA into accepting an inferior missile in 2008. So, you are right on this and I stand corrected. But the IA has itself to blame for this mess. No GSQR formulation for a 3rd Gen ATGM for 3 years - this when a 3rd gen ATGM is already under development. Then the usual IA Artillery-gun-style infinite trial tamasha. And then complain that it is short by over 40K ATGMs.
443 missiles out of a possible need for 40K "is paltry", whichever way we look at it. With a production run of 443 missiles, the per-unit cost will remain ridiculously high. I had read somewhere that the IA has an eventual need for 7K Nags. I hope to see the day when such an order materializes - the Akash success gives me some reason to hope.
To recap why I think the IA has been step-motherly towards Nag (all this has been discussed on this forum before):
a) Namica trials as far back as 2008
b) Nag trials in 2009, which it passes with flying colors. Minimum range tested: 800m
c) IA wants another trial in 2010 with a minimum range of 500m! Nag passes that one too
d) Namica complaints surface in 2011
e) Namica trials in 2012
There is no reason why the IA couldnt have placed a firm order in 2009 for Tranche1 of Nag/Namica for 443/13, to be followed by additional orders, once the newer minimum range was established and a newer version of Namica was delivered. There is also no sensible reason why the IA complained about Namica in 2011 - a full 3 years after testing it.
By now, they could have had their initial 443 missiles inducted, provided feedback on operational kinks to be ironed out & BDL could be manufacturing Tranche 2 or Tranche 3
If we want to be charitable to the IA, we can claim that this reflects a lack of foresight & planning. The uncharitable explanations would involve obsession with foreign maal or worse.