It's indeed true that specifications alone don't necessarily make a fighter jet appealing for exports. However, I was specifically addressing countries seeking a capable fighter jet without dependencies on the United States. Equipping the Tejas with an Indian engine could indeed make it a more viable option for such nations. I'm hopeful that the under-development Indian Kaveri engine will be ready within the next 10 years, or another engine is developed. It's important to note that the benchmark set for the Kaveri engine was exceptionally high; achieving it would even challenge the US. The aim was to create an engine small enough to fit into a compact fighter jet like the Tejas, yet capable of producing a 90kN thrust. Comparatively, the present GE F404 engine in the Tejas generates only 85kN of thrust.
Well there's always RD-33 series that is sanction proof, of course with some redesign and manufacturing work arounds that would cost probably far too much time. I thought India has selected to co-develop Kaveri with Safran and basing the new Kaveri off SNECMA's M88?
For the MK2 they could go with M88 based Kaveri engine. F404/414 with Mk1/1A.
In terms of compactness, Tejas ain't all that small. It's larger than combat capable trainers which admittedly either use two smaller engines or single very old engine (R25 in case of JL-9). Tejas is only slightly smaller than JF-17 and Gripen overall. Both those fighters can fit mid thrust engines fine and these sized fighters are expected to have such. 90KN wet thrust isn't that much these days. M88 may not have this but that was designed back in the 1980s I believe? Surely Safran can make a larger M88 with updated materials and achieve what even WS-13 later variants have managed (>90KN wet). WS-13 being some backup afterthought copy of RD-33 done just for the Pakistani airforce in case Russia blocked RD-93 sales for JF-17. For India to get this new Kaveri program up and running, it is simply a matter of how much they're willing to pay Safran. If not, work out politics with US and get secure F404 supplies. Export issues be damned. India cannot possibly be focusing Tejas for export. There's far too much competition out there from nations with more political sway. India may win markets like Malaysia but which other airforce is shopping in this market segment? Maybe a few African nations, a few SE Asian ones and South American nations. Total order numbers won't even be a fifth of what India plans to buy for itself.