An unpopular opinion, I am still a big critic of LCA mk1 & mk1a ,the though it's just trainer jet equivalent (of course it's on steroid) that program gonna yeild a knowledge pool & expertise to the domestic industry many fold than any MRFA program going to bring.
That's one of the main reasons the IAF did go for LCA Mk1A. But also 'cause it suffices for air defense and some strike roles relative to the capabilities of our two main adversaries. Both our main adversaries have 4th gen jets as the biggest components of their forces and it will stay that way until the 2060s, and the LCA has a lot of advantages against their much older designs due to its small RCS, high serviceability and low turnaround time. Considering these advantages coming in at such a low cost, and the obvious benefit to the industry which even you agree with, it's obviously a good decision.
Due to its lower lifespan, the upgrade cycle is much faster. By 2045-50 it will receive AMCA tech.