The Indians promised to fund the development. But in practice the money they actually put into the program was less than what you would pay to get a single production F-35 (without R&D costs). Russia was supposed to develop a twin seat aircraft for India and the Indians were supposed to develop the software. But they weren't happy with that, they just wanted to be able to build the entire aircraft in India. Or they wanted Russia to develop the aircraft on its own and only buy the finished product. So they left the program.
If one draws comparisons with the over-hyped, so-called "mother of all deals" with dassault, france for 126 mmrca units for india. The hoopla was the manufacturing of the aircraft on home soil. But in the end it fizzled out, and india ended up a heck of a lot more for just 36 Rafales. The "bone of contention" between the indians and the french was india wanting france to assume responsibility for manufacturing the aircraft, on indian soil, in indian manufacturing plants, with indian work force. As lucrative as the 126 mmrca deal may be for france, it would unlikely the french could take any responsibility, for the manufacturing, if everything is indian, subject to indian law and that too on indian soil.
They made a helluva mess with the mmrca deal and I believe they did the same with FGFA and Sukhoi, Russia. One thing is for sure, the indians have at least maintained a track record in screwing big ticket defense deals. Be it france or the Russia Federation.