Once completed ..even the MK- I will be a serious challenge to western figheters in the same league from business point of view. MK- II certainly do a lot of harm to chinese dream of selling j 10B in the international market but at the end of the day everything depends on how fast india can make LCA commercially available.Now comming to the war part i can only tell you one thing ..if possible try get a real time peek at the fighter you will be surprized to see the stability of the flight path compared to migs.I am sure its going to make a lot of people around the glob unhappy.Whatever is being offered to india currenly is a fall out of MRCA competetion but once the jet is available for commercial purpose( may not be before 2015 atleast) they will feel the pin as it will be the best & cheapest counter to europian and us jets incorporating indo israeli avonics , radar , russian active stealth (plasma coating) may be
The Mark-I is often underestimated by Indians. F-16 didn't get its initial hype because it its performance fresh out of factory; but because Americans advertised and believed in it. Only then, did it get a chance to prove itself. This is however not seen in Delhi's case. Many Indians I see still have the wrong idea that its a vintage aircraft now obsolete and not deserving, while conveniently forgetting the constant updating of the aircraft systems from time to time by engineers.
Indians need to learn to appreciate their own work as well at some point rather than constantly doubting their potential. One main component in self-reliance is to believe in one's own abilities. Despite such odds stacked against India, HAL still managed to make a state of the art fighter
that has till date not suffered even a single crash despite being in test phase.
I though have to agree that the pace of work at Indian establishments is rather slow and must be looked into. J-10B still has a chance of better exports than HAL Tejas MARK-II. The reason is not superiority but plain geo-strategy and economics.
Considering that Chinese have managed to stumble across an accidental empire by arming Pakistan against Indian forces, it is very likely that China would be able to penetrate into those markets that have been denied fighters by either Russia as well as West. There is no shortage of such countries.
For example, take Pakistan. It was a favorite of Americans until the cold war. However, US was never interested in a very strong Pakistan that could question its authority over in Asia. Hence it started tightening its grip in the F-16 deals and ultimately made it impossible. Pakistan could not choose the Russian option due to India successfully pressurizing Moscow to politically block its weapons sales to Islamabad. Pakistan's mini-conflict in support of NATO, against USSR is another factor that remains fresh in Russia's mind.
Therefore, it was natural for China to capture this market. Libya and Iran also come under this category. Libya suffers from a constant weapons embargo from the West while it is not keen to let Russia boss over its domestic issues by being too dependent on them. Therefore, Libya can be an export potential for the J-10Bs. Iran faces the same situation. Desperate to modernize its fleet of vintage F-14s in an economical fashion, Iran might find the offer of J-10Bs just too tempting to ignore. India for obvious reasons might not supply fighters to Iran as this would harm Israel.
Now moving on to economics. China is able to mass produce goods including armaments at dirt cheap prices simply because it buys foreign currency to deflate its local currency. This has so far worked out wonderfully since China can mass produce fighter jets cheaper and faster than Indians can today. While jets like FC-1 and J-10s are targeted for mass export to such stuck-up countries with no options, India focuses not on the export potential of its products but how it can retain its combat edge in the region by modernizing its air force with its own domestic fighter. This attitude means that they aren't successfully able to reduce the unit costs of the aircraft, not forgetting that LCA is much more advanced than Chinese FC-1 and perhaps even more than J-10 when other components materialize.
While Chinese fighters on their own (without foreign radar and electronic equipment) are average in technology, they are effective and economical alternatives to the more advanced and expensive Western and Russian fighter jets.
Therefore, in the foreseeable future, LCA MARK-II won't find it easy to challenge J-10's export potential.