This isn't a case of stuff being expensive. It is just daylight robbery.American drones are very expensive. Turkey or Iran would be an alternative for cheaper drones but thanks to India's foreign policy they are not options. CH-4s are obviously out of the question....
I actually think India is capable of developing an equivalent MALE drone. It would be a good stepping stone for their military industry but they are more interested in vanity projects that never get anywhere.
If its sectors where US has a mature industry, their prices are actually not that expensive at all. A F-35 per plane factory price for example will be somewhat cheaper than a J-20 per plane factory price.
Drones like MQ-9B (not even the MQ-20) are cheap dime a dozen garbage. Even top level drones like wz7 or latest block global hawk will not cost 100 million.
The deal is a spit in the face of India, nothing more and nothing less.
If India will preserve its dignity, it will not take such an insult lying down.
Through in the past, the Russians also spat in the face of Indians by transferring a decrepit carrier and then smugly cutting the elevators to be too small to fit anything except Russia's own crappy naval fighters. And India just accepted it.
So anything might be possible.