It is serving just fine, besides Indian Navy's VBSS and many police forces are also using it,
IA not opting it and waiting for MSMC//JVPC was a mistake if you'd ask me, like hell imagine giving up on a ready firearm for one to-be-developed one. Amogh is practically same to INSAS (or Kalashnikov in general) in terms of handling, disassembly etc so some commonality could also have helped in reducing training "cost".
While Amogh was rejected and MSMC//JVPC got stretched, they had to keep using dem Sterlings and in place of that some units had to be given B&T MP9 or such alternatives