So basically your conclusion that IN is not capable is based on the lack of news and not really on the facts of what they are able to do today, compared to the past.
The major problem of the Scorpene (apart from being a bad procurement for India in general), is that we didn't had the industrial capability to build them as fast as we wanted and that we put too much hope on DRDO again, to provide a modern AIP system.
The Kilos as you said are or will be upgraded, which will remain to be the base of our SSK fleet for a long time. They might lack the AIP system, but have land attack capability and latest systems too, so are by far not ancient, but will remain the base of IN's SSK fleet for quiet some time.
And I disagree with you that IN is very efficient compared to other forces, taking the costlier sub without AIP was silly enough, but creating a new competition, instead of simply ordering additional subs of the one in production only delays things. If they had simply ordered 6 more Scorpenes, with shared production between French and Indian production lines, we could field more SSK's faster than we do now.
Similarly, the MRMR, the ASW helicopter, the LDP...competitions, all delayed or re-issued because of IN's vague RFP's and a lack of an idea of what they really want and what is really needed.
But all that just shows, that IN could be even more capable than they already are today! Their surface fleet belongst to the strongest of the world, the reach is improving greatly as well and as soon as Arihant and upgraded ballistic missiles are available, we will have a propper 2nd strike capability against China as well. So they surely are highly capable even today and with the problems they have.
That's what I said and why we need to keep improving the ASW capability, besides the SSN / SSBN capability. But within the Indian Ocean area, IN is able to hold it's own.