The IAF today is at an all-time low of 30 fighter squadrons.
The assets we have right now and have been contracted are more than enough for a one-front war at a time. Pakistan is not being considered a serious threat due to their failure to modernise. It's also why the IAF is making a far more caliberated decision based on how the PLAAF modernises. The Chinese have the financial advantage, so they can recaliberate faster than we can if mistakes are made.
If we end up buying stuff that's useless against China, then it's gonna pose problems in the future even if we have 42 squadrons. For example, the MRFA is being split into two phases so the IAF can cancel the 2nd phase if it turns out the type is technologically lacking. The first phase could be cheaper as well, since ToT requirements are lower for the first 57 jets, only the next 60 are expected to large scale local production.
30 fighter squadrons are enough to deal with one threat at a time, this was proven by Gaganshakti. The IAF basically needs 30 jets in the north and west and 10 squadrons in the northeast to deal with both Pak and China at the same time. With 30 squadrons, it's gonna be 20+10, and then divert 10 squadrons towards China after the PAF is decimated, or so goes the plan. So the IAF will concentrate on air defence against China until the reorientation happens.
All our other air assets, like AWACS and helicopters are enough to deal with either Pak or China. I'm not overly worried in this regard because I'm sure that in case of war with China, some types of air assets like attack helicopters, transports etc and force multipliers like refuellers will be transferred from the US and France as necessary.