What are the reasons that prevent India from manufacturing Apache in its territory?

US Helicopter Apache AH-64E

The Apache AH-64 E Guardian:

The Apache have seen continuous upgrades due to battlefield experience during the Iraq War and the war in Afghanistan. The toughest is Afghanistan which has demonstrated the Apache’s extreme limit of operations and combat capabilities.

The AH-64E features improved digital connectivity, the Joint Tactical Information Distribution System, more powerful T700-GE-701D engines with upgraded gear transmission for more power, capability to control UAVs, full IFR capability, and improved landing gear. New composite rotor blades, which successfully completed testing, increase cruise speed, climb rate, and payload capacity.

This is the AH-64E Apache. Formerly known as AH-64D Block III, it was 

re-designated as AH-64E Guardian to represent its increased capabilities.

The programme AH-64 E Guardian:

I believe the unit price if manufactured in India would be very expensive. Under some analysis, the unit price to manufacture 28 units would cost a staggering US$250 million each. Buying direct is under US$100 million including associated support and no weapons which comes under a different package.

The Apache is a huge investment, that justify the cost. Anyhow the Apache order is not strategic, but it depends on India’s future attack helicopter program.

If the programs becomes a disaster, then the IAF and IA will look at either a follow on direct purchase or have some assemble line open and this order should be in large quantity like 120 units is at the minimum.

India was confident enough to buy Apache over the Mi-28 Havoc. It was unfortunate for the Russians as India has faced support issues from the central arms purchasing company which can’t be mentioned here but as everyone knows, India is not the only country having issues to get parts from Russia. That shot the change for the Havoc to win even though it was better in some ways to the AH-64E Apache.

The programme LCH:

The programme LCH is a very good start. It was designed and manufactured by the Hindustan Aeronautics Limited as part of the project to develop an Indian multirole combat helicopter. The LCH is ordered for both the Indian Air Force and the Indian Army and also intended to be an export income earner with clearance by the Indian government to sell to prospective customers.

India have admired in building their own attack helicopter but they are moving on a cautious approach due to pitfalls and the large investment requirement to go into such a project. India is new to many of the aerospace technologies it has invested.

The LCH is a long term project. It will complement the AH-64 Apache and will become the most numerous in the Indian armed forces. The choice not to manufacturer the AH-64E Apache was due to the small numbers as the investment required outweigh the cost of each Apache.

The HAL LCH is a fantastic start to the Indian Attack Helicopter requirements. A nice looking and clean helicopter. The ingenuity of the design is fantastic. I am really looking forward to see this helicopter full operational and i hope it would gain a great export success. The West are not the only one who can build a combat helicopter!

I am very confident that the Indian Aerospace Industries and the Indian Armed Forces would in one day have a combat capable helicopter that could be as good as today’s AH-64 Apache and even the Russian Mil Mi-28 Havoc. Once the Indians have mastered the technology and operations experience, i am confident they will be there among the major powers on the same level among the world's best. Just need to give HAL and the Indian Air Force time to learn, adopt and adapt.