I am very sure that additional orders for Mig-29s and more Su-30MKI sqns have reduced the overall Rafale orders. The money saved from Rafale will help us go for super Sukhoi upgrade and also more squadrons.
Actually the additional MKIs have not reduced Rafale requirement. The IAF has already pointed out that MKI and Rafale requirements are indepdenent of each other. Half the CPFH, twice the sortie rates, 30 hrs vs 9 hrs maintenance downtime etc, which puts Rafale in a different class.
And Mig-29s being ordered is too low. Need 100-200 to be a true replacement, not 20+. Which anyway defeats the purpose of getting a non-Russian aircraft because the Russians will then start doing exactly what Honeywell did with Jaguar. The Russians were a non-starter for a Rafale-equivalent induction from the very beginning. That $40M MKI upgrade program will become a $120M program the very next day, with a take it or leave it attitude, which will be followed up by, "If you use non-Russian equipment on MKI, we withdraw certification", because politics is now more important.
With the failure of FGFA, there is another chance for Russia to sell PAK FA to us as a direct import or just license production. If even that fails, then the Russians are going to get aggressive with us when it comes to existing deals and political support, they have done this before. It will be stupid on our part to give them new ammunition for that purpose. This is also one of the reasons why the Sukhoi spares and upgrade facilities are being built in India, the Russians may not be a good supplier 10 years down the line.
And with Jaguars losing their importance, we will become a Russia-heavy fighter force, which is a deadend proposition.
Diversification is the agenda here. So the only acceptable aircraft that can replace Rafale would be Typhoon, SH, F-16 or Gripen. Not MKI, not Mig-29/35, and definitely not the Su-35.
Cons:
Typhoon is too expensive and under-developed.
SH and F-16 are American. F-16 is single engine.
Gripen has critical American import, which puts at risk as much as 500 aircraft, with LCA and MWF sharing the same engine. Single engine.
So the choice is obvious. Rafale, Typhoon or SH. The IAF is not going to accept anything else other than these three.