Indian Small Arms System (INSAS) is a family of infantry arms consisting of an assault rifle, a light machine gun and a carbine.
Army soldiers will use the new weapon, which can be operated effectively in urban or jungle environments, instead of the standard INSAS rifle.
The DRDO is also developing a modern sub-machine carbine with a 5.56mm/30mm calibre, incorporating a pistol and a rifle design so that can be fired with one hand.
Armament Research and Development Establishment director Anil M Dattar said the new rifle is designed to provide night vision through integrated thermal imaging sensors.
The rifle and carbine of the Future Infantry Soldier project will be completed in three phases, with the first phase expected to be completed in three years.