Legal protection??
They are entering India not Pakistan :p
Tax benefits, probably some, but giving bigger market to business and ease in setting up the business is the lolipop that indian government offers to majority of foreign investors.
If you would read more about India, you will find there is nothing as such hindu other than group of people who worship anything. So basically Hindus are big conglomorate of millions of tribes, beliefs and thoughts, they are as diversed as rainforest humus. To next door hindus could be completely different.
Racism could be there at some remote rural region, urbans majority dont have racism, but obviously cultural affinity is there, which happens across the globe.
When you put too many human beings in one small space with all sort of odds, there would be few sparks every now and then. Till the time majority of them dont catch up with spark to make fire, everything is fine.