Suppose five tourists are taken hostage by few armed terrorists and Indian Armed Forces are called in to rescue them. These will be a high risk intervention op so either Para SF or Ghatak will be involved in.
If Para SF will be involved in such an operation they will bring in Tavor rifles , M4A1 Carbines , MP9 Personal Defense Weapons and Uzi SMGs along with a 9mm Sidearm ( Pistol 9mm 1A or Beretta 92SB ) for this operation which will involve a close quarter battle with terrorists.
Shot-Guns and See Through Wall radars will also be used for better effect as the hostiles position can be pointed out. A breaching charge will be laid and in a few seconds the doors would be breached with the operators entering an neutralizing the threat.
In cases of situations , when there are no hostages to be rescued they can use every weapon available with them like Tavors and AKs along with Uzis and MP9s.
You can have a look how Para SF eliminates terrorists in a CQB during a mock drill :
In some cases even Ghataks and local infantry can engage terrorists/militants in Close Quarter Battle where they are mostly armed with AKs available to them.
Though the question specifically asked for Indian Army , I am adding what weapons other forces uses anyway :
In case of NSG , they mostly use MP5 Variants and SG553SB for Close Quarter Battle. NSG also uses X-95 , F2000 , MP7 and M4A1 but in small numbers for training regimes and not for battlefield uses.
In case of MARCOS , they mostly uses MP5 variants like A3 and A5 for Close Quarter Battle and even the Tavor family of rifles at their disposal.
Most of the local QRT/SWAT units in India uses MP5 as standard CQB weapon. Other units like Force one and Mizoram Police Commandos uses M4A1 and Punjab Police SWAT uses SIG SG550 Rifle Series and MP9. X-95 Carbine is being accepted as a CQB weapon by many units in India like Uttarakhand ATS , COBRA and Punjab SWAT.’
Other units mostly uses AR-M1 and other AK-variants at their disposal along with the surplus MP5 SMGs like Aligarh Police SWAT.
Source – Quora Answer by Harsh B. Mishra