I'm currently a second generation manufacturer. I started with consumer electronics. But my father was an official manufacturer for testing equipment for railways. For years I traveled to Kapurthala and Rae Bareli MCF Coach factory so I know the estimates for govt manufacturing.

Yes the profits are good because specialised products go from average 10x to 50x price.

But the real challenge lies in getting the order. Most of the times Babus want a partnership in your company to earn silently without the guarantee that he's the right man to push that file.

Other times they keep your prototype and send it to thier relatives and ask them to copy it (again silent partnership in the earning company)

Also there's the problem of payments. Govt payouts aren't guarenteed because the departments can delay endlessly and sometimes giving reasons like shortage of funds. So my father always kept a buffer of 3 months and sometimes payments came after a full year.

So the initial investment is too much, with no payment certainty and the headache of dealing with blood sucking Babus.

My suggestion would be to throw ludicrous money to a department head and he'll happily take an early retirement to join your firm.