Trying to pressure the DGCA to take it easy on certain medical issues in line with international standards is an ongoing effort. The DGCA depends on the Indian Airforce to lay down its rather stringent civil aviation medical policies, as it doesn't have its own independent civil medical board like FAA or JAA to consider appeals. This definitely should change and am sure it will in the near future, under pressure from the airlines and pilots.
Meanwhile, I think a level playing field for both foreign license holders and local captains when it comes to medicals is in order, if some local captains are losing their jobs on that basis.
Why different norms for foreign pilots, Indian pilots ask DGCA [Mumbai] | Times of India, The Newspaper | Find Articles at BNET