iCare unwilling to change a phone with a manufacturing defect since it is out of warranty

iPhone 11 blacked out and is not starting. Took it to iCare and they said the is a logic circuit issue which cannot be fixed and offered me a replacement at INR 40,000 (I got the phone in Dec 2020 for INR 60,000). The phone is physically fine and has never been damaged or exposed to water, and the fact that iCare offered a replacement as the first option shows that it is a manufacturing defect.

Can anyone help me understand what are possible options at this point as I do not see paying that high an amount just to get the same phone, and that too because of no fault of mine?