This is the usual DGCA/Govt of India BS. They just say what the people want to hear.. "we will phase out expats and replace them with Indians". Such deadlines have been made in the past and they just keep extending them. In fact almost every airline in India is currently recruiting expats for various fleets with a 3 year contract. So an expat who joins in 2011 would have his contract till 2014.
With hundreds of aircraft on order I would not be surprised to see the number of expats go up in the future. I hope the command upgrades are done only if one deserves it and is capable rather than just to replace an expat. That is what the DGCA should be more worried about.