The young men and women of this country are those who are faced with this question. It is a burning question, because they do not want to blindly fall into the 'modern' or the 'tradition' hole with no way of coming out.
Let me remind you that this question is not a valid question at all. Let me remind you that if there is such a thing as 'Indian culture', it is you who will decide its shape and direction. Let me also remind you that preservation of this 'Indian culture' is not your duty, but only a choice.
Isn't it obvious, that an understanding of 'Indian culture' by its most vehement defenders, is meager and weak? Isn't it obvious that the people who feel offended by the entry of KFC, Levi's and Coke on Indian land have a very fragile Indian sense of life? Isn't it obvious that it is the noisiest of the defenders of 'Indian culture' whose 'Indian identity' is the most easily hurt?
Remember that you are truly Indian if you try to solve this problem, if you try to answer this question with reason and logic as your means; and these are 'modern' tools which are still to be discovered fully. Remember that those who blindly oppose 'modernity' are making shrill noises because their sense of national identity, their sense of belonging is threatened the very moment someone switches on the television and watches MTV. Remember that drinking softdrinks or beer isn't what that determines national identity.
Don't ever listen to the guy who tells you to 'live-in-the-present', 'just-do-it', 'relax-and-have-fun', 'chillout-and-enjoy' or 'get-up-and-get-down'. He is just a puppet, remote-controlled by other puppets elsewhere. Don't ever listen to the guy who tells you to "...have fun today because what gets done in 16 cannot be done at 60"; he doesn't plan to lead a long life.
Don't bother about that old man telling you that "...human values and principles were great in my time, they have all eroded now". That old man had a set of values which eroded the very moment MTV was beamed down. Don't bother about the men and women on the streets fighting to save 'Indian culture' by asking women not wear jeans or watch a certain movie. Tell them that it is your money and you will decide what to do with it. Note that their 'Indian culture' was destroyed the very moment you earned enough money to buy jeans.
If 'Indian culture' is, indeed a thing to be proud of, why then are we being asked to be proud of it? Let's be proud of India because we know the reasons why, and not because someone told us to be proud. Only those who do so can preserve 'Indian culture' and contribute to it. Don't fall for those who appeal to your pity to save 'Indian culture', you will then do more harm than good.
Find out why the reasons for being proud of India, and also feel proud because you found out why. Don't even get drawn into this stupid conflict, this is a fight between the 'modern' Pragmatist and the 19th century Traditionalist. Don't choose to be either.