Some people are rightly offended. But those same people were okay when artists like Santosh Pant made fun of the Madhesis on TV. This particular clip does not have it, but the program did.
And then there is this.
An American getting offended that Nepal's Kumari got stripped of her spiritual status because she visited the US is not insulting, I don't think it is. Really though, why would you strip Kumari's status just because she visited some country? And I don't think Colbert is acting offended, I think he is trying to act funny.
People have a right to burn flags. It is called free speech.
And this offended some Indians, take this.