First India is not Iraq or Argentina, and we are not waging war against the British or the Americans.
Our conflicts in all reality in the western theater would be of Air Domination, and in the east of containment. In either case we are not looking at India being wiped off the map, and after a War if anything defense spendings go up.
Which sane manufacturer would want to jeopardize on of the biggest customers it will have in the next century for supporting a Pakistan or a China.
I saw a couple of quips about Russian equipment, when has equipment been deliberately sabotaged by Russians in the past? Please show me on instance, same applies to the french, brits, or other euro equipment.
Next comes to procurement of equipment, Design Failure mode analysis is extensively carried out on frontline systems and tested before implementation, that is one of the reason you see so many Indian subsystems being installed into brand new system that are bought, they are there either to alleviate operational or design risks.
When you buy a Mirage 2000 and performs exceptionally in combat, guess what happens? > a mega deal for equivalent or better platform ensues.
Similarly when a Mig27 Conks out in combat , pretty soon it falls from the grace of the operator, and sees hurdles for repeat orders of equivalent or better platform.
Just under-performance is death of further business avenues, guess what would happen when there is connivance?