Australia piled up 482 for four in reply to India's paltry first innings score of 191 all out, to take a mammoth 291 runs lead at close on the second day of the second Test on Tuesday.
"They've been very disappointing. They (India) batted terribly and they just looked so lethargic in the field, they don't look like they want to be there," said Waugh.
"The tactics are right out there, very defensive. Dhoni is a very defensive captain. I have watched him a lot and he sits back and tries to see the opposition make mistakes.
"They've really got to change their attitude. They're pretty good at home but away from home they probably should be ranked about eighth," Waugh was quoted as saying by the foxsports.com.au.
Waugh, meanwhile, applauded the efforts of Ricky Ponting (134) and said now that the former skipper has managed to end his century drought, he is likely to score more runs.
Stating that Ponting's knock could open the floodgates, Waugh said, "He has threatened in the past three or four months with quite a few 50s and it's just good to see him make that hundred.
"He batted pretty well. I suppose you keep comparing him to the batsmen he was in his prime and he's not quite that player, but he's still very effective. He's a class player. That will keep the wolves at bay for a while I guess."
"He'll probably relax a bit more now and you'll probably see him make a lot more runs before this Test series is out."
Ponting hit his first century in two years - 17 Tests and 33 innings - this being his 40th hundred in his 160th Test.
