Watson responded to his axing by flying back to Australia and was contemplating his future.
Clarke said the dropping of the quartet should not be linked to just one incident as it was a result of many things put together, that have happened in the past.
"As Australian cricketers, we're expected to maintain the highest of standards. And in the case of the four players stood down from the third Test here in India, those standards have not been met. This was not an isolated incident. As a team over the past couple of months we have not reached the standards expected of us as Australian cricketers," Clarke said.
Clarke said he has not doubt about Watson's abilities and he was sure he comeback to the side as his deputy.
"A lot of people will ask about Shane Watson and the vice-captaincy. I absolutely believe he can bounce back from this and be the Australian vice-captain again.
"Watto is one of the best players in the world when he is at the top of his game. We didn't consider the names of the individuals when arriving at this decision but made a call in the best interests of the team," he said.