Indian cuisine is seriously diversed. In the North, they use a lot of green chillies and other raw spices/masalas in their food. Whereas, in South they use their spices/masalas a lot other than chillies. I bet you have not tried or heard about Northeast Indian cuisine, they eat anything that is edible(any meat) and use less masala on their food. Moreover, I feel you want to say is that Indian don't use chillies a lot. Infact, come to Northeast or try their cuisines, they uses their speciality heat agent (Ghost Pepper) in any curries or dishes or you may find chutney made from Ghost Pepper. As a whole, the spice tolerance in NER India is higher than any other part of India.