The CAG has criticized HAL for the failures of the RUAV-200 program, highlighting significant lapses in planning that led to a product unsuitable for defense needs and financial losses of ₹9.54 crore. The report emphasizes HAL’s failure to conduct a market survey or align with military requirements, resulting in an operationally inadequate UAV. Recommendations include establishing a Market Research Division, aligning projects with defense roadmaps, securing Letters of Intent, and conducting post-project evaluations to prevent future missteps. This critique reflects the importance of integrating market insights into defense development, essential for enhancing India’s self-reliance in the UAV sector and improving HAL’s credibility.