Because most European companies are paying lip service to EU sovereignty because of how tightly coupled they are to the US. Look at how the EU-China spat led to Nexperia China's de facto decoupling which shut down the EU automotive industry for a couple months. It's even worse with regards to American dependency.
> Why not get Independent Indian developers and the startup culture established around it
Because the dependency then comes from India. An "Atmanirbhar" EU means having the capacity for self-reliance almost entirely within the EU and without a dependency on non-EU states like India or Israel.
> It still doesn't effectively prevent the lock-in or worries in case of a geopolitical spat for EU in reality but only on the papers
European companies (like all companies) don't care about open-source once they become dominant in a segment - for example ERP and SAP and SUSE Linux, and industrial systems.
> To be honest, I am open to open sourcing much of my products (ideologically) but the problems I feel in open source is that its hard to even make a developer salary comparatively even in India
That's the reality of OSS. There's a reason most OSS contributors for critical projects are employed by the organizations that heavily utilize that project (eg. Python and Google, OCaml and Jane Street).
