The pilot body will influence and question decisions which affect them directly. It really isn't their place to question and/or influence higher level policy decisions. Way beyond their pay grade. These higher level decisions are better left to the ballot box. Even if their intentions were to try to steer the nations aviation policy in a certain direction, best to pick low hanging fruit ie FATA extensions, before moving to bigger issues.
What's holding up career progression for locals is limited training resources. Easier and more efficient to hire expats to fill the gap.
The days of expats in India are slowly but surely coming to an end, if it isn't obvious already. When I flew as an FO in one of the LCC's between '06 and '09, the expat-local captain ratio was almost 50/50. Now they have terminated all expat contracts and are solely relying on local crews. The local supply has caught up with the dwindling demand and the inevitable has happened. No point in blaming the local guys for their actions. It was only a matter of time.
I do, however, take exception to the fact fudging that is so prevalent in Indian aviation. It isn't easy to move shop for expats, and often they are treated as dispensable labour with no long term consideration for their well being. I guess it comes with the territory.
Good luck to all.