Money is not the issue for the problems of LCA, so not buying MMRCA, won't let LCA arrive earlier or make it more capable. In fact, the only reason for MMRCA is, that LCA development is so delayed, so we have to spend money because of LCA, not besides LCA.
Also, MKIs are heavy class and Russian, which makes it expensive and limited in weapons and systems. That's one reason why the Mig 35 was not chosen either, because it will use the same weapons that the MKI uses and doesn't offer IAF an alternative, but Kargil showed us, that overdepenence on Russian stuff only, isn't a good way. That's why IAF prefered additional, 2nd hand, or new M2Ks over the decades, instead of more Migs.
LCA not on time, Mig's not equipped during kargil etc points towards the elephant in the room - Comedy of mis management of the defence procurement program by IAF.
Mig's not equipped during Kargil was not some inherent flaw in the mig's , Although bulk of recce was done with mig 27's, (and another mig platform which doesn't needs to be discussed), Air superiority cover provided by mig 29 was unparalleled btw hence seems like Migs did their jobs well . The truth remains, IAF delayed DARE upgrades (Mig27M) and integration of Litening for both jaguars and Mig 27M's which led to such situation to begin with.
MMRCA is fuelled not by delay in LCA but with your's and mine tax goldmine. I would argue IAF or at least certain sections in IAF is causing delays in LCA too. Certain sections in the south block, HAL, MoD, IAF, all are complicit in this.
Mig 35 or the envisaged Mig 35MKI could have been exactly what Su30MKI did for IAF, but it wasn't given a chance, certain sections wanted the best and not the jugaad (MKI). We all know most of the paper specs for all the a/c's in the competition and there were some significant shortfalls for Mig35 (which could have been worked on) , but this is first hand from the CTP who was at the trials for mig 29OVT (Mig 35), "in straight dogfight OVT beats everything, french and the british crews couldn't believe their eyes what they were seeing when the OVT was flying ".
btw for kargil, IAF was also being cheap, one of the group captains refused letting use tv guided russain missile as "too expensive"...
Next as far as russian alternatives are concerned, the MKI is completely capable of taking on similar missions, with "russian" and "Indian" armament.
The context of alternative to russian armament has always bewildered me especially when 90% of your weapon systems are russian or russian derivative. It is only the russains who have allowed you to use western missiles on our MKI and russian missiles qualified on french systems. Ask the pakistani members here if US lets them use the SD10 from their f16 or allows AMRAAM on JF17... Dependability on russia as an military ally has been a boon for Indian forces...
Meteor has been hailed as the next best thing to sliced bread, but as far as I know, wait for a huge surprise by end of 2014, soon IAF will be scrambling to accommodate non-french missile on the rafale.