Disrespect unintended but I do not see any country wanting to team up with a chaotic, unfit for purpose, state controlled, bureaucracy-riddled military aviation sector such as is found in India. As a measure of how deeply inadequate the government-controlled sector is, the private sector in India looks like it does not want to touch participation in AMCA production with a barge pole.We should look for partners for LCA not customers, nobody is going to invest billions in a jet which is just 4th gen and developed by India. There are 5-6 alternatives available.
GoI should be prepared to invest few millions in loss making deal and find some African country which can offer some mines for LCA. That's the only way we can sell LCA outside India, there has to be some strategic importance of LCA.
I agree with you that India would do well to invest a few millions in a loss making deal or two selling a few Mk1A's to export customers. It would give MK1A the chance to prove its worth in the international market. Most importantly a couple of export deals could show if India was able to provide adequate post-sales support. I suspect they would show that the Indian military aviation sector in its current incarnation is not capable of doing that. A useful lesson would be learnt - either reform or give up all thoughts of becoming a serious force in the world fast jet market and instead just stick to supplying India's armed forces.