This article validates James MacGregor Burns’ hypothesis that moral development is a critical qualification of transformational leaders. In India, morality is conceptualized as Karma-Yoga, a technique for performing actions such that the soul is not bound by the results of the actions. Karma-Yoga has three dimensions—duty-orientation, indifference to rewards, and equanimity—and constitutes a comprehensive model for moral development in the Indian context. We studied 205 leader–follower pairs to investigate the impact of a leader’s Karma-Yoga and a follower’s belief in Indian (...) philosophy on the follower’s perception of transformational leadership. We found that a leader’s duty-orientation was related to a leader’s charisma and inspirational motivation. The relationship was strengthened when a follower’s belief in Indian philosophy was high. The findings support a model of Indian transformational leadership built on the fundamental beliefs in Indian philosophy and duty-orientation. (shrink)