There is actually no need until 2035 to 2040, when the MKIs will need replacements, because all older fighters will be replaced by FGFA and even if IAF wants to increase numbers, additional FGFA, MMRCA, LCA makes more sense than developing a completelly new fighter type.
51 x Mirage 2000s
69 x Mig 29
36 x upgraded Mig 27
~100 x Jaguars
=> 256
FGFA order 250+
Not to forget that AURA UCAV is the way better option to replace Jaguars in the ground attack role than AMCA!
But the worst part is, that they are delaying decisons for LCA, because they have already AMCA in mind. Why can't they get one thing done, induct it into the force and then start another project, why do they have to all do all things at once? LCA MK1 developent, LCA MK2 development, N-LCA development, AMCA development...all at the same time and then they wonder why things went wrong.