The BCCI doesn't allow Indian players to participate in franchise cricket leagues around the world, which limits their exposure in a big way.
The Indian team was playing in a bubble with their performances only in the IPL or series within the Big 3. This bubble was badly exposed when they had to play against the top talented teams like Pakistan. BCCI should need to revise their policy otherwise they will have to face similar situation whenever they will play big tournaments.
They are afraid of losing with their neighboring country and hence the prefer not to play at all.