Earlier this month, Cricket Australia had confirmed that India would not play a day-night Test in Adelaide during their upcoming tour to Australia later this year.
Australia had been trying to convince the Board of Control for Cricket in India (BCCI) to play the opening match of their Test series at the Adelaide Oval under lights, but the visitors had eventually refused for a day-night affair.
And Waugh believes the call was not just disappointing, but also a selfish one given the falling popularity of the longest format of the game around the world.
"It's a little bit selfish from India's point of view because we need to revitalise Test cricket. Day-night Test cricket in some countries is going to be one of those ingredients that could transform Test cricket back to where it should be," cricket.com.au quoted, as saying.
Waugh, who stepped down from the post of Australian national selector after serving almost four years at the job, further said that though Test cricket was the pure form of cricket, the popularity has dropped in many cricketing countries such as West Indies and South Africa.
"So it's really only Australia, India and England where Test cricket is alive and well. For me that's a concern," said Waugh, who will not renew his contract when it runs out on August 31.
Insisting that the current Indian side is very well suited for day-night cricket, Waugh said that he doesn't understand as to why the Virat Kohli-led side are reluctant to play under lights.
"Their team is pretty well suited to day-night cricket, they've got a string of fast bowlers, so they don't just rely on the spinners, and their batsman are technically very good as well. So for the greater good of the game, I would have loved to have seen that as a day-night Test," he said.
It should be noted that India are one of only two Full Members nations - the other being Bangladesh - to have not played a day-night Test at international level.
As a result of India's decision, the Adelaide Test between the two sides this summer will be played during the day time.
Australia are slated to play three-match T20I series against India from November 21 to November 25 followed by their Test series for the Border-Gavaskar Trophy in Adelaide, commencing from December 6.
The two sides will then play their second Test in the newly-built Perth Stadium (December 14-18) before heading to Melbourne and Sydney for the traditional Boxing Day and New Year's games.
Subsequently, Australia will play three-match ODI series against India, beginning January 12 at the Sydney Cricket Ground. (ANI)