That's not correct! The Rafale was selected as the prefered choice for negotiations, but the EF is still in the game unlike the Mig or the other rejected fighters. IF anything goes wrong with the French offer, the first alternative choice remains to be the EF and no other fighter.
However, since the EF remains to be clearly more costly and less capable at the same time, it won't have much chances in the current finacial situation unless they come up with an offer of Indian specific needs (Kaveri/AESA engine co-development and integration, common systems and joint marketing of LCA MK2 as part of the consortium partnership for example), they can't equal the high costs.
They surely had during the MMRCA evaluation, but now they don't have to because it's a no brainer that they will use Dassaults failure to seal the deal earlier as an own chance. If they succeed is another issue, but trying to still win is a logical way to go and will put pressure on the French at the same time too. I only hope that even if the BJP will come to power, the decision won't be a political one, but based on the best package for India.