I think India has similar issues to China - the local airlines have far lower cost bases and are already familiar to the greater number of passengers.
Possibly an option for Jetstar once it gets its 321neos which will free up 788s from some of their shorter routes.
The other issue is that, whilst the Indian middle class is growing, what constitutes a middle class salary in India is quite low, (under USD15K). This means that a return airfare to AU of around USD600 per person remains prohibitively expensive for most Indians.
717, 721/2, 732/3/4/5/7/8/9, 742/3/4, 752/3, 762/3, 772/E/W, 788/9, 300,310, 319,320/1, 332/3, 359, 388, DC9, DC10, F28, F100, 142,143, E75/90, CR2, D82/3/4, SF3, ATR