I work in a company with a lot of staff from India (TCS consultants). I can confirm that some of them have a fairly flexible relationship with reality and facts, and it can be incredibly irritating at times. I agree that it is most likely a cultural thing: decorating / distorting facts to achieve goals is looked upon more favorably in some cultures than others, with all the moral hazard and distorted incentives that implies.
It is, however, worth noting that not everyone from India I have met is like that or that one attitude or way of communicating is automatically better than another. Once one learns to parse the code, life gets considerably easier.
TCS supply L1/L2 internal support services where I work, and while the more senior members of the teams are very good at their jobs and take a proactive part in providing supporting, the ones who have been there less than 5 years (made up number, the less experienced/greener staff) struggle to follow simple instructions without several confirmations of the actions, even when pretty comprehensive documentation has been provided. It's quite an interesting, and often frustrating, dynamic.