There is a thing as cost inflation. Please bear in mind that the MMRCA deal was floated around 2000-01 odd. The deal has been inked and finalised. What else are they waiting for? In all these years the IAF has thoroughly evaluated the aircraft and selected the best. 126 aircraft and supporting equipment WILL cost money and a LOT of money. If the payment is made now it actually helps the tax payer because then there will be no inflation adjustments.
LCA was designed as a Mig-21 replacement. It does a very good job as a Mig-21 replacement but the problem is that 2015 is the age of 5th generation aircraft and in India we are trying to rebuild a 3rd generation plane. AESA+stealth design has become the standard and goal of every modern air force. LCA was planned in 1980s and we are still to induct them. The aircraft is not bad but its role will be limited in modern high-tech environment and instead of spending money buying 200 LCA the money would be better spend buying additional MKI or Rafale.
On one hand India is investing in the Russian FGFA and on the other hand we want to induct a 3rd generation fighter as well. Does not make any sense.
Mig-29s are same as F-16s, you can upgrade the aircraft to make it relevant but if you have the option to go for a EF-2000 then go for that instead of a Mig-29. I am not calling the fulcrum a bad aircraft, I am saying time has come to retire the aircraft. Mig-21s in the 50s and 60s were the best fighter interceptors in the world, but today is 2015 and things have changed.
The only class of Migs good enough to put up a fight is Mig-29 but even they are aging. There are a lots of ifs and bts attached with Mig 21/23/27. 150 upgraded Mig-27 sounds good but I would rather have 40-50 frontline Rafale/Typhoon than 150 second line of attack Mig-27.
Jaguars are past their prime. Spitfires were the legends of WW2 but new Spitfires are not made today because the generation of the aircraft has evolved. Jaguars are strike aircraft and IAF already has the trump card with MKI. Having 7-8 different types of aircraft in an airforce is not a plus point but a SERIOUS disadvantage. Logistics and maintenance will be badly hit.
Fewer classes of aircraft of the best quality is anyday better than a dozen types of aircraft of average quality.
A 400 strong IAF consisting of MKI, Rafale, 4th generation aircraft like EF-2000 Typhoon will be more effective feared and respected than 900 strong IAF consisting of Mig-27, Jaguars, LCA etc.