What are some of the most common misconceptions that Americans, Britishers and most other Western people have about India and it's citizens?

The problem with answering this question is we only know our views are misconceptions when you tell us - and then as one misconception maybe that you lie - we may not believe you.    However I am not sure how much is misconception rather than stereotypes based on India in the past, media portrayal and excessive focus on certain features which are different to the west.
a) Indians wobble their head when they say "Yes".   Its not every Indian, and it probably does not just mean "yes", but I think it is probably true that Indians  wobble their heads, more often  than we do.
b) Indians all have an arranged marriage.  Probably too sweeping a statement, and accentuated given the difference to freely chosen brides and bridegrooms in the West, but undoubtedly it is a lot more common amongst South Asians than white anglo saxon males - so there are probably grounds for this belief.
c) India is a male dominated nation with little regard for women in their society.  People arguing this point to the reported (and unreported) incidence of rape and the often prefunctury police investigations and judicial follow up.   The problem with  this is it is difficult to tell how endemic this as we rely on a media which feeds off bad news.  However certainly there are cultural differences on how someone straight from India and someone from the West would react to a scantily dressed woman in a bar.   So I would guess there is some truth, reducing with globalization, travel, infrastructure and education
d) Indians worship and don't eat cows.  More Hindi than Indian
e) Indians are corrupt.  Possibly less of a national trait and more just the effect of ineffective policing and a bureaucratic judicial service. 

Obviously India is a diverse nation with many different stereotypes just as not everyone from England behaves like Mr Bean, is a football hooligan, drinks too much alcohol abroad and talks with a plummy accent.

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