Yes but in a small limited number... though im not sure abt ur police using them.
Actually post 26/11 there has been a HUGE weapons upgradation in India among all federal and state police forces in terms of small arms an other tech, all following forces HAVE or previously had Mp5s in service:
CISF-Used by QRTs at airports and metro lines (including recently inducted MP5ks)
CRPF-uses them extensively in anti-Maoist ops, mostly used by COBRA units but regulars aswell. (MP5ks are also now used as are recently inducted CTARs)
NSG-probably the most widespread usage of all federal forces as it is their standard weapon for CQB (trails of othe SMGs are in process to REPLACE MP5s and SIG 552 commandos are already inducted, MTAR/ZITTARI is one possibility and under trail)
SSB-in use
SFF-in widespread usage along with Mp5k
ITBP-in use
BSF-in use in limited numbers to be replaced/supplemented by Beretta Mx4 carbine.
SPG- Previously used by both CAT and close protection team, has been REPLACED by FN P90 and MP5ks-for concealed usage in later role and former role along with the FN 2000.
POLICE FORCES:
Delhi police-used by DP SWAT along with Colt M4
Mahrastra state police-used by Force One along with Mp5ks and Colt M4s, also used by local Mumbai police QRTs along with M4s and upgraded AKs.
ARMED FORCES:
it is used by the special forces of all three arms for CQB but is stated to be replaced by all three arms by the ZITTARI/MSMC.
Various other state police forces throughout the country for SWAT and CQB usage.