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I am sure BMW engines are designed to run on all sorts of petrol and am also sure they would not offer the petrol engine in a market if they thought the local fuel would damage the car and therefore their reputation. I would be more worried about putting low quality diesel into a modern European diesel engine as the fuel companies in Europe have made huge strides to improve the quality of this vile fuel and the engine manufacturers have developed engines to make fully use of these advances.
If the choice is between a bodged up diesel or a stock petrol, I would go for the stock option every time.
I confess my only knowledge of Indian roads is as a tourist in the back of a car in Bombay, Delhi and some other tourist sites but confess I do not remember any roads where you could fully (or even partially!) enjoy a 328i.
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