Situation is this- the IA is looking to begin receiving the first deliveres of a 60,000 assault rifle order within the next 12 months. This is the foreign multi-cal rifle deal you are referring to- my hope is either the ARX-160 or the Ceska Brena wins this order. Under the agreement 120,000 will subsequently be produced by the OFB in India so this is a deal for ~200,000 rifles (when the OFB has the licence and ToT they can churn out as many of these ARs as they like) and then there is a second deal for foreign made SMGs and this deal is for 40,000 with full ToT and a subsequent ~100,000 produced by OFB in India- once again with the ToT and licence the OFB can produce these at will subsequently.
Now if you take these des at face value and rule out any furthers since production beyond the figures I have mentioned then these two deals will be enough to equip only ~1/3rd of the IA and will leave millions if INSAS around in the hands of the IA,IAF,IN and CAPFs. So the question arises will these deals eventually lead,through subsequent orders, to the complete phasing out of the INSAS in India? The DRDO's mulit-cal rifle further muddies the waters as I am told that despite this foreign rifle buy the DRDO is still very much intent on delivering their rifle to the IA under the F-INSAS program and that firing trials have commenced already.
So it remains to be seen exactly how the INSAS is replaced ie by the foreign rifle in totality or by both the foreign rifle AND the DRDO's offering but it is clear that by 2017-20 the INSAS will be gone completely from Indian military service.