India have ruled out participating in a day-night match in Australia in December, much to Waugh's frustration.
And the Australia selector, who will step down when his contract expires in August, believes Test cricket needs India to support such fixtures, as one of the few nations where the game is thriving.
"It's a little bit selfish from India's point of view because we need to revitalise Test cricket," Waugh said on Big Sports Breakfast radio.
"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.
"It's really only Australia, India and England where Test cricket is alive and well. For me, that's a concern."