If other states were serious about aviation safety they would also ban all Indian registered aircraft and all pilots who originally got an Indian ATPL until they can be verified that they actually have all passes in their subjects and their hours are correct.
So lets say Middle East bans Indian Carriers and India Reciprocates, Who do you think would be at an bigger loss ? .. I know its Hypothetical.
The problem in India is the regulator itself. Absolute Bureaucracy with Obsolete Machinery. Until 2001, Civil Aviation Ministry and Department was an insignificant and uncared for branch of the Indian Government. There were only few players in the Industry of which only Air India, Indian Airlines, Jet Airways and Air Sahara were playing an significant role. The common man of India was not interested in any aspect of Civil Aviation as flying as an air passenger was beyond his reach. But post the open skies policy and liberalization of the Indian Skies and subsequent start up of Low Cost and Regional Carriers. Civil Aviation Department began to handle tasks and work loads which is well beyond its capacity. Even though the number of aircraft and passengers have increased exponentially and even as orders for hundreds of aircraft are made from the American and European Plane Makers, the age old mind set and the official work culture still remains of that of stone age.
Government of India must wake up the urgent demands of the Indian Civil Aviation Industry. Merely constructing Swanky terminals or merging airlines wouldnt help. The DGCA must immedeately wake up to the changes happening with the Global Civil Aviation Regulators. If necessary, ammend age old rules of 1937 to the needs of 2011 and beyond. Safely and Expeditiously must be the motto. There needs a big change in all the aspects from people who are in the tables of power to the crew examinations, licensing, medicals etc.
The pilot who got himself busted is merely an victim of the entire machinery.