I think that the EF2000 would make a great job replacing other air superiority fighters, and that´s for Israel and Japan. But if you are looking for such a multirole fighter, the EF2000 may be too expensive.
If i were the Indian authorities, i would think of the Rafale, provided that it could be used also in the navy, with a large commonality of spares, training, et cetera, and that it is a french aircraft, being the French already dealing with the Indians. However, the aircraft wich better fits the IAF requirements is the Gripen. Including policy and so on, i would still bet on MiG-35
I think that the better solution would be for the Indians to invest on the Tejas and make it a better fighter, i feel that this shouldn´t be more than a close-gap or an alternative in the event the Tejas failed to make it. Look at the USAF. They didn´t do it too bad despite heving aircraft as light as the F-16 as the core of their strike-fighter force. So Gripen or Tejas are, IMHO, the way to go