Here's my attempt:
Britain drops out of WW2 in 1940. The Germans fight the Red Army until 1947 when an atomic bomb is dropped on Moscow and the USSR surrenders. Meanwhile, the US defeats Japan in a separate Pacific War in the mid-40s. This leads to a US-Nazi Cold War. The humiliated UK resists decolonization at all costs. This becomes increasingly difficult as Germany is feeling its oats and funding rebellions in the various colonies. In 1951, India goes into outright revolt. They win and end up turning into a very nasty fascist state consisting of formerly British India + Burma.
This Indian fascism is a mixture of Nazi racial ideas and a twisted form of Hinduism. According to their view of Karma, they believe that it is good to inflict suffering on oneself and others, since this will mean more pleasure in future lives to balance it out. They also have no qualms about killing their people, since they will just be reincarnated anyway. The caste system is rigorously enforced and the Dalits are regularly tortured and killed by the government. The pain of torture will guarantee them more pleasure in the next life, and the death is seen as a mercy killing. During wartime of course, they are conscripted to die in mass suicide charges. That way, their death is accomplished in a way that benefits the state. Those that do not subscribe to their radical view of Hinduism are also killed, in hopes that they will be wiser in their next lives. Millions of Pakistani Muslims are killed.
Their racial views are . . . complicated. They see only Aryans as being worthy of torture and death. Non-Aryans exist only to serve Aryans. Those that are not Aryan (Burmese for example) are used for slave labor. When they are injured or fall ill, they are simply left outside to die of exposure or starvation. There is no point in torturing them to improve their karma or killing them prematurely to speed their reincarnation process, because after all, Non-aryans don't have souls and thus cannot be reincarnated. However, even that isn't that simple, because like the Nazis, they define "Aryan" creatively to mean whatever they want it to mean. Dravidians are Aryans, but Burmese are not. Meanwhile, India controls Tibet as a puppet state and often imports Tibetans as additional slave labor when the Burmese and other untermenschen are not enough.
All good Aryan citizens of India must submit to at least one hour in government torture chambers each week. They are also encouraged to self-torture in their free time, and a surprising number of them do since they've been brainwashed. They are also expected to commit suicide in the most painful manner that they can devise upon reaching age 60, since they can no longer be productive members of society. Better to get it over with so that you can get your strapping young new body.
Economically, the state follows a Nazi-style State Capitalist system. Private enterprise is encouraged, but all products must be approved by the government, and if you try to produce more or less than you're told then your business will be nationalized. Taxes are high enough to fund a massive military, plus a world-class education (read: "indoctrination") system, and the aforementioned torture chambers. The military is used often to prop up Nazi-puppets in Central Asia.
By the 1990s, India has grown in power to the point that many nations look at them and Germany and wonder who is who's sidekick. Granted, Germany's economy is still much larger and their military more technologically advanced, but India's economy is growing quickly and what it lacks in technology it makes up for in sheer numbers. By this point, the Fascist block really is a joint German-Indian venture. The US would prefer that the German remain firmly in command of the alliance, since the Indians are so insane that MAD may not apply. After all, they don't think death is that big a deal.