Kinda' amusing to read this stuff. A few observations:
1) On one hand, NAG has a point, but they shouldn't make it about Indian vs the rest of the world in terms of nationality. That is xenophobic and racist. Indians dominate in all sorts of fields across the globe, medicine, engineering, aviation, and of course IT. Can you imagine the blow-back to their nation if the those industries in the rest of the world demanded they get fired just because their "Indian"? GMAB. Just like NAG expects their contract to be honored, so too must Jet honor the remainder of the expat contract. Else what's the point of having a contract in the first place? Jet still needs expat pilots. Probably always will because so many leave to work for airlines abroad. NAG should make it a requirement for any expat joiner to first go through them. IOW, Jet interviews and hires the pilot but before training commences, an interview must be passed with NAG and said pilot is required to become a NAG member as well, which means paying NAG dues too.
2) I lived in India for 5 years, am married to an Indian, have an extended Indian family and of course half-Indian kids. So I am uniquely qualified to say this (from experience): Indians can be some of the racist people... TO OTHER INDIANS!!! Ok, let's remove the word racist and call it discriminatory. They are quite often always squabbling among each other, probably due to being tightly packed into only 6 main cities there. Quite often in one of these squabbles the caste or "race" card (in their terms meaning religion-based race ex hindu, muslim, etc) card gets thrown as the default. It's sort of pathetic. Even they will tell you that they are this way. Many internal problems over there, like the rape situation, that gets buried under the rug but comes out in arguments at various stages in life, say a fight between neighbors, etc. But it goes beyond that. With 700-800 million in the poor category. Most Indians are exploited by their employers, from the domestic servant to the IT worker to, yes, the airline pilot. Even they are treated like crap by their companies. Remember Air India getting paid almost 2 years late? Or Kingfisher tech workers killing themselves because they hadn't been paid in 2 years? They do that, btw, because they know the justice system will never come to their aid. So they are destitute and desperate. Anyway, point being of all this, Indians, namely NAG in this case, need to look within to the source and resolution for their problems. Blaming it on foreigners, or foreign pilots is the wrong way to go and can have un-intended consequences for their national pride down the road.
3) If said captain did indeed call someone a "bloody Indian", and there is proof of that, fire his ass! Send him packing. Period, plain and simple. We all know you just can't insult people like that in any country, least of all in your host country. But a fair and equitable investigation into the actual course of events is always the first step in that process. We have all been accused of something at some point in our lives. There's always two sides to every story.
4) Indian pilots. I love Indians. In fact most of my aviation buddies are Indian. Great people. But, man, some of them are absolutely autocratic operators in the cockpit and that doesn't bode well for CRM and a safe environment. When I flew there FOs loved to fly with me because I gave them landings. I always found that amusing because that shouldn't be the reason I was liked. Rather, I should be liked for my casual and chilled-out attitude at work. But they would tell me that this captain or that captain just wouldn't allow them to fly. Why? How can you mentor tomorrow's aviator if you don't give him the chance to manipulate the controls? Granted, many of the new pilots start with only 250 hrs anyway so I get that the experience level is low but still, I flew with 2500 hr FOs who had very few landings under the belt and were facing upgrade very soon. Not an ideal situation for safety. Now you have a 2500-3,000 hr pilot gong for upgrade. What happens when he is flying with a 250 hr new-hire? Moving on, there were other issues. Indian commanders (not all, only a few but a noticeable amount) liked to domineer their staff from FAs and ground staff all the way up to their FOs. Perhaps it's in their upbringing so it's hard to blame them singly (they have a very Machavellian way of education and child rearing). Whatever it is it can act as a bottleneck to the flow of information needed to facilitate proper CRM thereby encouraging FOs to speak up when they see something going not quite right.
But don't get me wrong here. Their cultural issues aren't entirely flawed. Sometimes such an approach to managing staff is needed. A lot of lying happens in India, for example, a loader/ ramper or a gate agent might lie about how they did something. Sometimes it took a heavy hand to get them to do it correctly. I would usually have my FO go and work out those situations. It was funny how he would quickly assume that domineering role when given the chance to order someone around. But overall though I didn't find that systemic approach conducive to a proper CRM template which is needed for the cockpit environment.
5) Jet and NAG vs "foreigners". Both parties need to be careful as they are an international airline. It can be construed that NAG are being nationalistic and discriminatory against anyone not Indian. That doesn't work well in the global marketplace. I don't really think this needs explaining. But, for example, when i see a pilot on my airline's forum say something against Indians or Muslims, and he's say a 777 pilot who regularly flies to India, I am quick to remind him that we are a global airline. And that the routes he primarily flies only exist because probably 90% of his passengers are Indian (or Muslim). Fact is, you just can't be a racist and claim you want to fly internationally. If you want to be that way, fly domestic routes. Otherwise, show some respect and find a different way to get your point across. Because right now NAG is coming across as against anyone but Indian. That may play well on the national level. But they are an international airline. So they best not forget that while operating on the global stage.