On the contrary, without the outside support that the Indian aviation industry has been able to rely on for all developments since the 1960s, the Indian aviation industry would be much stronger than it is now. By being forced to use a less ideal engine for a while, or subpar radar for a few years, internal development would have been much more advanced than it is now.
The situation of the Indian aviation industry right now is a consequence of excessive support and "readily available" superior foreign alternatives since the inception of the industry. Imagine giving an infant leg braces before they can walk; can we be surprised when the moment the leg braces are removed, they can no longer stand upright?
This is again why the IAF will never have quality aircraft with reasonable electronics, armament, propulsion, etc. integration without serious change in the way that the Indian procurement thought process goes. The default cannot be "oooh a foreign option that is so good in so many ways, that will beat everything our adversaries might have."