Has it been rejected by the Indians? I would imagine it would have made news...If the Mig-35 will be there at all, it has been rejected by the Indians and unless Russia places large orders for them the air craft is dead.
Either way it is likely to be ordered by the VVS (due to the LFI requirement). If it can win export orders from Vietnam that may give it a new lease on life. Although I can't see Vietnam ordering any until it becomes readily available.
I don't see anything wrong with replacing the large number of MiG-21 with a smaller number of Su-30MK2 or Su-35S.