Shortround6
Major General
The Fiat design was physically larger than the Gnat making it more capable.
And only 3 countries took it on...hardly NATO.
It was a Nato sponsored competition and paid for in part with MAP funds I believe. The fact that only three countries took it on doesn't mean that it wasn't a Nato program to start with.
The Gnat had no role in the RAF as it was too short ranged and could carry no bombs or internal equipment...even as a trainer it was pretty marginal. The test pilots who flew it did say it was the best flying machine they ever flew...but they couldnt make it operational.
The Indian Air Force might disagree with that and a few Pakistani pilots must be wondering what shot them down if Gnats weren't operational.