According to the Oxford Dictionary, someone 'stylish' is one who possesses "a distinctive appearance, typically determined by the principles according to which something is designed"
This leads me to believe that 'style' is very personal and it varies from person to person making it distinctive of their own personal tastes and idea of beauty.
Having said that, the question is based on the premise that this is stylish:
But what about this:
This is a woman from a small village in India. She represents her culture and personal style so elegantly through her delicate hair parting and bright vermillion adorning it, hinting at her matrimony, her conchshell bangles and ruby red lac wristlet, a shimmery dot of bindi on her forehead, her inexpensive jewellery and fresh marigold in her hair.
The way she dresses and carries herself speaks volumes about her life and where she comes from. And that, is what is her style.
Like her, there are various other examples of Indians who showcase their personal style in various ways.
Now I find all of these people very stylish and beautiful and at the end of it maybe it comes down to the proverb "Beauty lies in the eye of the beholder."
Maybe you do not find somebody stylish as per your standards. But can we set a standard for 'style' really if it is all about individual expression of the self?
Style is about individuality and diversity, therefore concluding that Indians, in general, lack a sense of style is premature.