India didnt go for it as Tejas MK-2, with design frozen, has more or less equivalent parameters in comparison to gripen. Doesnt make sense to import (even with TOT as you suggest) if a ground up, IDDM plane is available in a short timeframe.
Rather overstating the capabilities of JF 17. It is, by design supposed to be a "just good enough" plane that is cheap enough to be operated by countries like pakistan. As such, it suffers from design flaws that are cost saving measures but reduce the capabilities by a lot. Does not compare to any true 4th/4.5 gen fighter. Its missiles are less capable (Except for PL 15, only available in block 3 and only if chinese are not overstating capabilities as they are wont to do - And still outclassed by a mile by the likes of Meteor); its AshM are slower, with lower range; No in flight refuelling; and has been plagued by poor availability and reliability.
An okay fighter, if all you want is something that can fly, has a radar, and can shoot - All while fitting a poor countries budget. But it is laughable to claim that it has "superior capabilities" to F16s or Gripens or even Tejas. Better than 3rd gen, but inferior to anything true 4.5th gen.
Coming to production, the americans managed to outproduce the germans, yes, and that was the reason they won as you correctly claimed. However, keeping in mind that PAC has little to no capability of manufacturing the plane on its own, the argument is moot. It is dependant on china for basically every major technologically complex part of the plane, and several non complex parts are CKD kits that they simply assemble.
