Ravi K, Have you heard of Embraer? It is the largest small jet manufacturer in the world (less than 100 passangers). Right from executive jets to small passenger planes. It is a Brazilian company (gasp!). A third world country, no better no worse than India.
As to which country makes jet engines, China does. Russia does. France and Germany do, so to the british. And of course, USA does. I believe the Sweedes (Saab Gripen/Volvo) do. I dont know if Embraer does, I think not, but in any case, India definately doesnt. And that's a concern, because it means we can never build an indegenous fighter plane.