Buying the Gripen would mean the end of the LCA programme. For all its delays, I don’t see any Indian government pulling the plug on the LCA. OTOH, the Super Hornet and Eurofighter have an advantage in the competition in that their engines are being considered for an upgraded LCA , which would not only ease the logistics situation for a bloated airforce, but also bring LCA close to the Gripen in capability.
The Gripen also has considerable foreign content- a radar developed with French help and an American engine. Those governments can deny export licenses during critical negotiations. Countries have done that before.
That would leave only the French and the Russians, because the french would not impose sanctions, just jack up the price. For the stated aim of replacing the Mig 21, its great, but as you say, other considerations would put it at the bottom of the heap, along with the F-18.
How do the costs compare, the Gripen v/s the Eurofighter and the Russians?