The F-21 sucks, literally. Cutting edge electronics, but not enough of it, in an obsolete airframe. Rafale isn't competing with Tejas, Gripen E and F-21 are.
LCA Mk2 doesn't need to be the best, it only needs to fit the mission profile. As long as our primary air superiority fighter does its job, the LCA only needs to adequately perform against diminished threats. So there's no need to waste money on imports for this requirement.
Indigenous is subjective, but we need to start somewhere in order to make our own MKI replacement 15 years from now. Or we will keep importing for the next 100 years. So LCA is a very good starting point. We are entering a stage where if the primary ASF is not Indian, then we will lose the air war by default. Why? Because importers are 10-15 years behind countries that create their own IP.
As for Uttam, while the Mk1 model going on the LCA Mk1A may not be as good as a Russian radar, there is a whole new family of Uttam radars being worked on. Mk2 is going on LCA Mk2, and we could see Mk3/Mk4 etc for MKI MLU and AMCA. So it's an evolutionary design. I don't know how far it's true, at the very least HAL is claiming the Uttam Mk1 is better than the EL/M 2052 going on Mk1A. So that's something.