Although people will find it hard to disagree with you about most things related to Air India/DGCA, your examples are rather blind and short sighted.
1) Sleepy pilot caused Indian passenger plane crash
Now what on earth does this have to do with anything? Most crashes will have a human element to it. You can bet your house the JAA/FAA and their pilots (so to speak) have played a role in multiple crashes and deaths. Why is this singled out as a bad regulator issue?
2) Fake pilots. This Helps To Explain A Lot Of Things...
True, this is a massive headache, one the DGCA needs to crack down on. How they will do it and whether it will work is anyone's guess.
But keep in mind EVERY regulatory agency has its battles. Heck there was a German pilot who almost (or did?) get arrested for forging his licence and flying on line operations carrying passengers as an Examiner when he was a co-pilot. So what now, throw the German agency into the list of 'blacklisted' whatever?
I would agree if you stated that pressure is probably needed from ICAO for the DGCA to get its house in order; but to base your claim on the fact that there was a crash in India + a few pilots are dishonest well heck!!! If you truly think that's an Indian problem and doesn't happen in western countries wake up get your head out of the mud and smell the fresh air.
Again, I reiterate the ICAO and other agencies NEED to put massive pressure on the DGCA to reform. There is a heck of a lot of corruption in the system. However that's different from saying because AI came up with its own FDTL rule the DGCA needs to be banned?