I've been saying this since the original deal for 75 PC-7 Mk.2s was signed. There is NO need whatsoever for the IJT (HJT-36 Sitara). One has to understand the context in which the IJT project was sanctioned- the original Hawk deal looked to be dead in the water and the BTA deal was in a similar state of stasis and then the Deepak fleet was grounded. If you can think back a few years, the training fleet of the IAF (and IN) was in real crisis and here the IJT was thought up and started- it would look to be a compromise between a BTA and a AJT and could hopefully save the IAF's backsides. Fast forward a few years and the Hawk and PC-7 are in service in large numbers and the IJT is nowhere. The IJT is simply not needed now, thankfully the IAF's trainer a/c woes have been addressed almost entirely and between the PC-7s and Hawk AJT there training syllabus is complete (many airforces actually have this exact training regime, there is no IJT step). The IAF doesn't need a 4 stage training regime that looks like:
BTA (PC-7)
IJT (HJT-36)
AJT (Hawk Mk.132)
OCU (Trainer version of the respective a/c the pilots will graduate to).
Now, arguably all the IAF needs is a supersonic lead in fighter, LIFT, (the LCA Mk.1 would be ideal) in between the AJT and OCU stages- but even this is more of a luxury than necessity. The IAF could quite easily make do with the 3 stage training syllabus like most AFs in the world.
The IAF has little interest in the HJT-36 now that it has the PC-7 and Hawk AJT so they aren't pushing for it much anymore and HAL have diverted most of their attention on the LCA and other projects so the IJT is really going nowhere.
HAL is entirely at fault- they have STILL not actually produced anything but a wooden mockup of the HTT-44 and when the IAF asked for a quote of the HTT-40, HAL quoted a price almost DOUBLE that of the PC-7! The IAF can't afford to sit around for years for a BTA that will cost more than the PC-7s that they are more than happy with, and that will add a duplicate set of logistics complicating their lives no end. There is simply no need for the HTT-40 now and I am sure sense will prevail and 106 more PC-7s will be built in India soon.
Well the fact is you can't compare the two systems. In India the military is 100% subservient to the civilian establishment and whilst they outline their requirements, it is the civilians in the MoD who make the final call. In Pakistan the Military is the boss- no one is going to challenge their decisions. I don't know about more "bang for your buck", there is little oversight in the Pak Military's procurements, most procurements don't seem to come from multi-vendor tenders (government to government deals will ALWAYS be easier and quicker) and the system is inherently opaque meaning there is the possibility for some generals to be filing their pockets (if it can happen on occasion in India and other militaries who have oversight then it's got to be more prevalent in the Pak context- that's just human nature). There are certainly some deals that seem to counter this "bang for your buck" argument and the fact you do not have anything like a CAG to highlight them means the myth of "bang for your buck" can be perpetuated forever.