The Indiana state constitution is pretty clear about religious freedom. It devotes an entire clause to protecting religious opinion and conscience against interference by the state.
There have been occasions where the LGBT crowd tried to use the power of the state to bully Christians into violating their consciences. AFAIK all those attempts failed, and in fact were shut down hard, in large part because the state constitution is so explicit about religious freedom.
So this new law is nothing new. It just restates and makes statutory what was already well defined constitutional law.
ETA Relevant section of state constitution:
Section 3. Freedom of religious opinions
No law shall, in any case whatever, control the free exercise and enjoyment of religious opinions, or interfere with the rights of conscience.
ETA #2 Summary of the new RFRA bill:
Religious freedom restoration act.
Provides that a state or local government action may not substantially burden a person's right to the exercise of religion unless it is demonstrated that applying the burden to the person's exercise of religion is: (1) essential to further a compelling governmental interest; and (2) the least restrictive means of furthering the compelling governmental interest. Provides that a person whose exercise of religion has been substantially burdened, or is likely to be substantially burdened, by a state or local government action may assert the burden as a claim or defense in a judicial proceeding, regardless of whether the state or a political subdivision of the state is a party to the judicial proceeding. Allows a person who asserts a burden as a claim or defense to obtain appropriate relief, including: (1) injunctive relief; (2) declaratory relief; (3) compensatory damages; and (4) recovery of court costs and reasonable attorney's fees
The RFRA bill is just a mushy, watered-down restatement of the provision in the state constitution. Incidentally, it says nothing about discrimination, protected classes, LGBT, or anything of the sort. It's limited to defining when and how the state can force people to violate their religious beliefs.