India does not plan to introduce an outdated LIFT which uses the JJ-7/FT-7's turbojet engines in an era of turbofans with mechanical linkages for controls.
The plan is simply to use the HF-24's aerodynamic layout (which was considered extremely good even in it's days) while using the GE F-404 or F-414 engines with FADEC and use FBW FCS controls, unlike the mechanical linkages on the JL-9.
The avionics will be as good as those on the Tejas Mk2 (HLFT-42 will naturally share commonality with it) whereas a radar and IRST will be offered and that will be up to the IAF to go with. The displays/synthetic training that the HLFT-42 will use will be similar to what was shown on the LCA SPORT (which has been dropped from development due to the cost associated with building a jet with such a lot of composites)
So it will be as modern as any new gen trainer in development today including the T-7A and Hurjet.
Which brings me to the point you chose not to answer- What is so special and revolutionary about the T-7A design ? Or the Hurjet? What makes them stand out over the proposed HLFT-42?
I would appreciate a nuanced answer to know what exactly it is that these in development trainers have that the proposed HLFT-42 design doesn't.
After all the T-7A is a reworked Hornet design with obvious similarities that arose out of Boeing's access to the Hornet design as it's OEM. And even with that the T-7A is not going to enter service till 2026 as per the latest reports on AviationWeek.
Regarding the HJT-36, it has already completed all mandated spin tests. You clearly aren't aware of that. The IAF however, now does not seem to be in a hurry to bring in an IJT (which is what the HJT-36 is) to slot in between PC-7 Mk2/HTT-40 and Hawk AJT for training, anymore. At least that's my take, though HAL's Chief Test Pilot tweeted this pic today of the Sitara.
My guess is that in a few years from now, a new clean sheet AJT design will be offered by HAL to replace the hundred odd Hawks in IAF and IN service.