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Was the problem your asking the question, or was the problem the apparent pattern of rampant casteism?

I am not Indian. Hope that helps explain.

Was he an Indian sr manager too?

He was also not Indian but many of the senior managers were

It doesn't.

His answer could mean two things, and which one it is depends more on his race than yours.

He was also not Indian but many of the senior managers were.

I heard a very similar story about a department in a higher education institution.

This is similar to having the first 30 engineers all come from the same school. Helps with speed in the short term but sub-optimal in the long term. This is why forms like Google centralize hiring.

Perhaps the manager was critiquing your absolutist use of the word 'need' here.

;)