If they werent thinking this, then they havent gone with indegenizing FCC for MKI, and converting MKI to fully adopt 1553 bus. Its a cost prohibitive exercise, and achieve nothing for upgrading 200 or so MKIs.Additional MKIs are useless, it will only serve to bolster an already bloated reserve force. A better option is to just buy more LCAs, and that's exactly what the IAF has decided to do with the 5 extra squadrons.
While the main thrust is towards LCA and AMCA, we will still need a 6-squadron stopgap jet that's been operationally proven or combat proven. It's based on our geography, we have 3 main areas to defend, and we need 2 squadrons in each. And this jet is necessary to bridge the gap between MKI (2000s) and AMCA Mk2 (2040s). And we are already a decade late.
Furthur, they are not stopping there, GTRE is already upgrading Al-31's hot section.
And looks like MoD have already decided to purchase several new MKI UPG airframes, not just 12, which looks like an initial order.