Again, it all comes down to what the airlines need compared to what's available out there. There aren't enough opportunities for guys and gals to get that kind of experience. The trickle down is that the airlines don't have a choice.
The best way out is to recruit expat F/O's. But put yourself in a local kids shoes. He has no opportunity to gain the experience and skills which are in dire need prior to stepping onto a jet. This uneven playing field puts them at a severe disadvantage. Even if one was willing to go the conventional western way of career progression, which country is going to give a green guy a work permit to go and work their way up.
You are bang on with the 200 hr F/O and new capt. scenario. We have a lot of retirees here from the states and other countries. One of the more unique challenges facing us now is pilot incapacitation. My airline has recognized this and is trying to sked only experienced F/O's with new capt.'s (I believe DGCA requires that as well). But with so many new hires on both seats this becomes a daunting task as well. Also this combination robs F/O's of an opportunity to learn a/c handling because the new capt's are not cleared for assisted t/o's and ldg's. A catch 22 where everyone.
I actually feel bad for these expats who join as line captains but employed as de facto training captains.