Vaughan pointed out that despite the talent and resources at their disposal, India has not been able to produce remarkable performances.
India's last ICC trophy came in 2013 when MS Dhoni led the team to the Champions Trophy triumph.
While speaking during a Fox Sports panel discussion during the second Test between Australia and Pakistan at the MCG, Vaughan started the conversation thread on the Indian team, posing a question to the former Australia batsman Mark Waugh.
“Do you think that in terms of cricket, India is one of the most underperforming sporting teams in the world,” Vaughan asked Waugh.
But the Australian preferred to refer the question to Vaughan.
“They haven't won much lately. I think they're (an underachieving team). They're not winning anything. When was the last time they won something? With all their talent, all their skills (they should have done more,” Vaughan said.
The England captain, who won the Ashes in 2005, admitted that India's effort to win the series in Australia was formidable, but added that the Men in Blue had failed to perform in the World Cups.
“They won twice in Australia (Test series in 2018/19 and 2020/21). Magnificent. But in the last World Cups, (they have) been nowhere, in the last T20 World Cups, (they have) been nowhere,” he added.
BCCI retires MS Dhoni's iconic No.7 jersey to honor his contribution to Indian cricket
Vaughan said India should have done much more than they did given the talent in their ranks.
“They're a good team. They have a lot of talent, but with all their talent and resources, I just don't think they won,” he said.
(With inputs from PTI)