First thing first; stop shoving something down a force's throat just because it's indigenous.
Second; you suggested JVPC and Amogh; as they are potent. Then you suggested TAR and INSAS, if they need more lethality.
But I think you missed the point that SWATs want the least lethality.
You don't want to injure a hostage behind the hostage standing behind the hijacker you're engaging.
First thing first: State police hardly fire 200 round bullet in their whole career. You call them forces? When was the last time a Police force went on full fledged neutralization mission against armed enemies like US SWAT??
Second, you need to understand that in states like Jharkhand, Chattisgarh, parts of Maha, Police encounter heavily armed Maoists with no will to give up. These encounters may go on for hours before commandos step in.
People like you wanna give them puny MP5 with 9mm ammo when Maoists know how to take cover and give support fire. Do remember that JVPC has 5.56x30mm FMJ which can pierce thru max natural covers.
As far as lethality at cities are concerned: you have hollow point bullets too that have much lesser lethal impact when a civilian is accidentally shot with it. But you need to ask yourself this. How many Police jawans that carry INSAS or SLR use such bullets? They too have FMJs.