After A.R. Rehman’s awards for Slumdog Millionare, Gluestick at the aavakai blog thinks the answer to the question is both yes and no :

The truth is that Indian music has been on the international radar from a long time – Pt. Ravi Shankar, Ustad Zakir Hussain have won Grammies before this. Classical music appealed to a lot of western musicians like John McLaughlin (Shakti) early on. Rock and roll fusions with Indian music were well-known in the 70s & 80s. Indian music & instruments got publicity with artists like George Harrison (Beatles). Of late, Bhangra music is proliferated to many western clubs, thanks to the second generation Punjabis living abroad.