At this point there is no way the Su-35 is half price of the Rafale. If we are talking about an export bird, I would not expect the difference to be much -depends on how much the French try to squeeze out of their customers. RuAF naturally buys the Su-35 at a much cheaper price.
I would say the Rafales will cost about 150 million while the new Flankers will cost 80 million.
I still think this whole program was a waste of a decade and enormous amounts of money and Ink.
They could have said at the time we have Mirage 2000s in service and we have Mig-29s in service and we have lots of other planes like Jaguar and Mig-27. We can upgrade the Mig-29s and the Mirage 2Ks, or we can upgrade one and replace the other or we can replace both with their natural replacements.
The natural replacement for the Mig-29 is the Mig-35 and the natural replacement for the M2K is the Rafale.
Instead they wasted a decade... and upgraded their Mig-29s and replaced their M2Ks.
In buying the Rafale they are now getting a plane that costs 2 times more than their Su-30MKI when they bought them originally. They waste ten years and everything is much more expensive now.
So in the future we will have 3 air-defense fighters. MiG-35, Su-35, PAK-FA
In the 1990s when there was no money in Russia they had Mig-29s, Mig-31s, and Su-27s.
The point is that each is different enough to be useful.
Add the PAK FA and you have even more flexibility.
I think there was another issue that French agreed to reinvest 50% i.e. $5B into India while the Russian and American just wanted to do 30%. Technology transfer was also the issue with Russian and much more with Americans. Also, Indians have been crashing lots of Mig-21s and blaming it on Russian equiptment. The truth is they tend to keep birds in bad repair shapes so they will create problems.
The investment levels were set in the contract AFAIK and that is perfectly normal. I rather doubt there were issues with technology transfer with the Russians and not with the French.
The problems with the Migs are often to do with buying cheap spare parts from eastern europe and later finding out they are fakes. AFAIK the Indian Mig-21s were made in India, so how can they blame Russia?
Most airforces in the world that operate Mig-21s love them because they are cheaper to run and simple to maintain.
Some East European countries give up their Mig-29s before the Mig-21s because the Mig-21 is cheaper to operate.
I think diversification was the only real reason given for dropping the Mig-35 from the race... it makes the Indian complaints that the Mig-35 didn't make it to AeroIndia in 2010 interesting... perhaps Mig were realising then they didn't have a chance...
Claiming you want diversity of suppliers is fair enough, but it is not fair enough to make a company go through the expense of running a race they were never going to be allowed to win. I think that is dishonest and very unfair.
Still this is nothing to do with the Su-34.