This is old stuff. India said some months back it has no intentions of purchasing any F18 or F16's. It would prefer S-27 modified or MiG29's. However, the Indian government did express a desire to obtain F35 JSF once avialable.
However, they'd like to load them up with Israeli and US avionics and weapons.
It's a great combo.
The IAF's newest aircraft as of now is the SU-30,which is a variant of the SU-27.About 200 will be in service by 2015,which would put it out of contention for this current contract.A carrier borne variant of the Mig-29 is being purchased for the Indian navy & the IAF hasn't actually had a great time with maintaining it's existing fleet of air defence Mig-29s,which could go against the Fulcrum.