How to fight back when you see this happening at line management level, but not yet proliferated to upper management? Indian product owner taking mostly to Indian peer developers, bypassing normal communication channels. Indians being friendly with each other and stone cold with the rest. Indians bringing Indian jokes to the table, with no outsider hoping to understand these. Indians bonding to go to Indian restauran…
I'd always been around people from all sorts of places, and many of the schools I went to would intentionally keep kids of similar origins apart to force them to mingle with others, so I grew up to prefer being around people from different places over just sticking with other Indians. I've had several experiences of running into people who seem to take pride in being the way you describe. My interpretation has been that they have a chip on their shoulder about not being "westerners" and view anyone who is better integrated as being some sort of traitor.
For now, I've only had to experience it in school and university. It's been awful every time. Yours is also a sentiment many people have expressed to me about other Indians once they've opened up to me and realized I won't care if they say something that could be racist.