The requirement of 7.62*51 mm was originally envisaged for replacing Insas. The army issued the tender in 2017-18 for 72k for frontline troops only, with an option of repeat order of 72k rifles. The rest of the troops were suppossed to get the OFB R-2 rifle (which was being tested and finetuned in OFB under army supervision). In fact 25% of the requiremnt was to be fullfiled by foreign off the shelf purchase, 25% by OFB R-2 and another tender was to be isssued for domestic manufacturing for the rest 50% (where even OFB could participate). This was clearly stated by Gen Rawat (then COAS) in his press conference.
Then all of a sudden this new hafta deal of 7 lakh AK-203 is announced to placate the Russians. Apparently an empowered team of MOD officialls went on a world tour (on taxpayers expense) and visited different arms factories and declared AK-203 as the winner during visit to Kalashnikov factory (just after firing few rounds in their in-house range). This seems to the most murkiest deal after Admiral Gorshkov.
The problem is where will this AKs go? I hope they don't equip the Infantry with these AKs. No other country is doing that except may be Vietnam and some small countries. I would rather have the R-2 rifle or 7.62*51 mm analogue of the new Sig 550 chap ARDE carbine, to equip the rest of the Infantry.
Other than Rashtriya rifles, Assam Rifles and support troops like artillery and AAC, I don't see any utility for this AKs. But then again, the there is a separated 5.56 carbine tender of 93k +3.6L especially meant for support troops.
The Pakis have G-3 as their main rifle of Infantry, and Type -56 in carbine role.