What the US is doing is not a good thing for them. It's the exact opposite of what they should actually be doing since an insurgency trains you for something else entirely. In Iraq and Afghanistan, they should have done what the IA did in Kashmir, that is withdraw the regular forces and create a counterinsurgency force like the RR. The last time they fought a proper air war was back during Vietnam.
Kargil was indeed a wake up call, and we did modernise right after that. All the big ticket deals were signed during that time. Procurement of MKI, Vikramaditya, Phalcon etc, along with LCA, Dhruv, SSBN, BMD, Pinaka R&D, and so on. But the minute UPA came to power, military modernisation was pushed to the side for 10 years, until NDA came back to power again.