Here's a cool bibliography I've been meaning to link for a long time: South Asia and the South Asian Diaspora in Children's Literature. The extensive work-in-progress is compiled by Pooja Makhijani, an editor at Weekly Reader and the author of the picture book Mama's Saris, due out next spring. She also edited the anthology Under Her Skin: How Girls Experience Race in America, and blogs at DesiLit Daily.
The bibliography is quite a resource; each book Makhijani lists comes with a description, too. The following comes from the picture book category:
Elephant Dance: Remembering India
Theresa Heine, Illustrated by Sheila Moxley
Grandfather tells many stories about his native India in answer to Ravi and Anjali's questions, such as the tale of a procession of elephants on the feast of Divaali when he was a boy.
Original link via Moorishgirl.