swaati- I'm sure the indian guy did not know that the word "bahadur" is demeaning to all nepalese. This is a common problem a young nepali faces when they come to US and deal with Indians. Indians are used to calling bahadur and kanchas back home and they think its all right to call any nepalese with that name. The poor nepali guy from village in India can't defend due to job security and most of the time they don't even know its an insulting word for nepalese. But when a young guy/girl from ktm come to US and hears those words they go bizzark. What you should have done was politely explain that the word is insulting to all nepalese. I've heard this story many times and its always due to misconception among indians that its all right to call all nepalese bahadur or kancha. If you ever get into that situation just explain nicely and if he does it again go kick his balls. Most of the time indians will be very surprised to know that the word bahadur is insulting to nepalese. There is no question that you tried to protect nepai pride.