Earlier quoted context omitted.
It has been explained to me that it is common for many indians to justify another person’s plight by believing that a condition of suffering is that person’s ‘karmic destiny.’ Therefore it would be ‘bad karma’ to help such a person.
Well, that perception, if it has been presented to you, is false. In fact, in India, whenever someone is discouraged to help someone out, the most popular argument is "Why bother? It's not your problem!" or "It'll be more trouble than it's worth" - just like anywhere else in the world.
I once got stopped by a couple that gave me a story about being left away from home and no means to get back etc... I gave them Rs.50 and they kind of stared at me with bewilderment like "that's all you're giving me"
(And keep in mind that I'm not a white guy standing out in the crowd - I look just like every other Indian on the street :) )
Small things like this make me slightly more reluctant to give money to people on the street. I prefer to donate via charities that I help out with instead.