hmmm
Well I think the reason why american companies employ a high number of Indians is beacuse they cannot find the same skill level among the locals and also not to mention its is cheaper to employ an Indian and he/she works for more hours for less money. Where as in the Indian aviation sector it is the other way.
Moreover the DGCA is not asking the airlines to get rid of all foreigh pilots overnight and replace them with less experienced or under qualified pilots. What they are saying is despite havin experienced FO's who are qualified to move to the left seat they are still being made to fly as FO's. I am not saying that every experinced FO's would qualify or have the skill level to become a captain, some don't but most do.
Some of the private airlines still continue to hire or still have foreign FO's. I think its ok in case if they are flying the big jets like the 777's etc. but to have foreing FO's on 320's, 737's and ATR's is not really required since there are a lot of Indian pilots sitting on the ground with type ratings.