As part of a reshuffle of the calendar from 2015 onwards by supremo Bernie Ecclestone, the race will be reinstated early that year.
The decision is due to be ratified at the September meeting of the World Motor Sport Council when a provisional calendar is produced.
Vicky Chandhok, president of the Federation of Motor Sports Clubs of India told Press Association Sport: "From my understanding the 2014 race is being dropped in favour of an early 2015 race.
"There would then be an extension through to 2016 so as to fulfil the five-year contract the FIA and FOM (Formula One Management) have with each other.
"To have a race in late October 2014 and then to have another race a few months later is just impossible in terms of commercial value, in terms of logistics, to put an event together.
"This way you get Australia, Malaysia, China and India together in the early part of the year, and then it moves away to Europe, South America and America.
"So in terms of logistics and planning it does make more sense, and with new races in Russia and Austria, the options for Bernie for next year are a lot more than he had in the early part of this year."
Ecclestone stated during the Hungarian Grand Prix weekend the 2014 event in India would "probably not" happen due to it being "very political".
With promoters Jaypee Sports International also understood to be under pressure financially, the omission next year allows them additional time to collate their resources.
With regard to this season and the ongoing issues over taxation in India, Chandhok is adamant there will be no problems.
The Indian authorities believe with 19 races in Formula One this season, and with one of those in India, then one nineteenth of the sport's income should be taxed in India.
Despite that, Chandhok added: "As far as this year is concerned all systems are ready to go.
"All permissions are in place from the government authorities, the ministry of external affairs, the home ministry and ministry of sports.
"Everything is in place for this year. There is no ambiguity about this year at all."