Ram Guha has an interesting piece on the topic.
…..a cricket fan in his thirties asked me; “Who was the best cricketer never to play for India?” He himself thought it must be Amol Muzumdar, the fine Mumbai batsman who was coached by Ramkant Achrekar, as were Sachin Tendulkar, Vinod Kambli, Pravin Amre and Anil Agarkar, all of whom were capped often for India. However, despite an outstanding Ranji Trophy record, Muzumdar never played for the country himself.
While conceding that Muzumdar was unlucky, I told my questioner that his preference betrayed a twin bias: On behalf of his own generation, and on behalf of batsmen. I have now been watching first-class cricket for close to 50 years. Based on this experience, my own candidate for the best player never to play for India would be a bowler. Among the cricketers I have myself watched, I would pick either Rajinder Goel or Padmakar Shivalkar.
Both Goel and Shivalkar were left-arm spinners. Goel played for Patiala, Southern Punjab, Delhi and Haryana in the Ranji Trophy. Shivalkar played for only one team, Bombay as it was then known. Both had extremely long careers, extending over twenty-seven years in the case of Goel and as many as thirty-three in the case of Shivalkar. Both were bowlers through and through. Although Goel (remarkably) began as an opening batsman he soon slid rapidly down the order. Shivalkar never batted higher than number ten. Neither could field particularly well.
Yet both were magnificent bowlers. Both had superb control, sharp turn, and a deadly armer. They never gave anything away, and were absolutely devastating on a turning wicket. Think of them of being, as it were, as accurate as Ravindra Jadeja but with more bite off the wicket (though Jadeja of course has the edge when it comes to other departments of the game). Their first-class records tell the story adequately: Goel had 750 wickets at 18.58 apiece, Shivalkar 589 wickets at 19.89 apiece. Both had an economy rate of just over two runs per over.
The reason neither man played for India was the same. This was Bishan Singh Bedi. Bedi was an even better slow arm spinner than Goel or Shivalkar. Moreover, he was their contemporary, which meant that so long as he was around and playing for India, they never could play for India too.