"It might awaken a sleeping giant, so to speak. We'll see that when they come out," Hazlewood told 'Sydney Morning Herald'.
Not only did the drubbing at home mark one of the darkest moments in India's Test cricket history, it has also significantly impacted the Rohit Sharma-led side's chances of qualifying for next year's
Three back-to-back losses meant that India have lost their top spot to Australia in the WTC standings.
India are now faced with a tough task to win four of their five matches against Australia to qualify for their third consecutive WTC final without relying on external results.
"It's obviously better them losing 3-0 than winning 3-0, easily. The confidence might have taken a bit of a hit. A lot of them have been out here, but there are a few batters who haven't, so they'll be a bit unsure of what to expect," Hazlewood said.
"I don't think you can read too much into it. The results are obviously good for us in a way."
Hazlewood, who is a part of Australia's three-pronged pace attack along with Mitchell Starc and skipper Pat Cummins, lauded his Trans-Tasman rivals for achieving something no other team has been able to do.
"Credit to the Kiwi boys. They played outstanding cricket. To win 3-0 in India is unbelievable. It's hard enough to win one game there, let alone every match of the series," Hazlewood said.
Australia are set to host India for a five-match Test series, starting November 22 in Perth.
"Everything's falling into place. It's just a huge series. Every time we play India, it's right up there with the Ashes," Hazlewood said.
"I think the crowds will be massive. I think the TV ratings could be huge. (There is talk) it could be the biggest ever."
Hazlewood, who turned up for Queensland in their Sheffield Shield match against New South Wales, missed the opening ODI against Pakistan on Monday but said he would play the second match on Friday in Adelaide.
"I pretty much got out what I needed ... very happy with how I bowled. Body felt surprisingly good. The longer I went, I think the better that I felt, and the rhythm was there," he added.
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