The 60-year-old Australian, a former Olympian, submitted his resignation in dramatic fashion barely three weeks after guiding the team to a historic gold in the Asian Games, saying that he was finding it difficult to adjust to the decision making style of the sporting bureaucracy in the country.
Hours after his resignation was made public, Walsh, whose contract was to run till the 2016 Rio Olympics, said he was looking for a "re-negotiation" for his contract.
"We are right now in a position of re-negotiations and see how it may or may not turnout. Let's see what happens. We have got a month to solve that," he said.
Walsh said unless there were changes in the way things work in India, it would be difficult to produce results in the 2016 Rio Olympics.
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"I believe there needs to be some changes and alterations in the way things operate for us to be able to really give a good shot in 2016. Without those changes I just can't believe that we can go forward," he said.
"All are in a state of shock which was expected. We have become a very close unit. There is a lot more than just the 16 players. There is a whole group. We have got a lot of people invested in what's going on," he said.