Local industry is weak, but the composite armor of the T90 and barrel, which was denied from Russia is being produced by India. You even read your source wrong, it's not 40% indigenous content, but only met 40% of the production goal. Way back in 09 70% of the T90S was localized.
Right now, the tanks have 70 per cent indigenous content, which is expected to go up to 85 per cent. “The economies of scale do not permit us to manufacture the remaining 15 per cent,” said S. Chandrasekar, Director-General, Heavy Vehicles Group.
http://www.thehindu.com/todays-pape...ously-built-t90-s-rolls-out/article212652.ece
It's even more now.
CIWS, main gun, anti submarine system are localized in India. The main radar, Indian. FCS for CIWS and main gun, localized. Sonar Indian. What Italian helo?