Festival of India is the first weekend of September in front of the Knight Theater. They close off two blocks on Tryon and it's a proper street fair with music and food outdoors.
2010 marked the 16th annual India Festival and outside the food vendors were great. We had samosas, chicken and rice, and shaved ice for dessert.
You have to buy tokens to get food and it was $5 to enter the theater but well worth it to see authentic costumes and dancing.