Except that thing wasn't going to be light. It was some sort of FN MAG derivative, downsized quite a bit, but could never compete with the likes of the Negev or Mk.48. Still be too heavy. We'll not be seeing an indigenous LMG design in service anytime soon. Not unless an Indian company can design something capable of competing with the Negev NG-7, which seems poised to win the tender for the other 44k LMGs as well, seeing as IWI already manufactures products in India.
But, you have to expect the Negevs to be in service for another 30 to 40 years, easily. So no indigenous LMG for the Indian army until the next mass replacement of small arms, which is not going to happen soon, because small arms tech has plateaued. Next major breakthrough will be portable railguns/coil guns. Until those come, we'll be stuck with whatever we buy in the next few years.
Existing weapon systems will be upgraded with FCS like feature packed optics in the near future (relatively, maybe by 2030), but that is about it. More focus will be given to network centric warfare, individual situational awareness systems, etc.