According to The Firearm Blog, India is going to replace its INSAS rifle with another indegenous rifle called 'Excalibur'. It still looks like an AK derivative. Photo is at the link.
INSAS has more or less been a failure to the point where Indian troops in 'red zone' (in conflict areas) will be getting alternatives. That is unrelated to this procurement but serves as another example of INSAS's failure.
India recently solicited foreign firearms companies to submit their proposal for the INSAS replacement, but cancelled the competition and just went with this new gun.
From: The Firearm Blog