This article validates James MacGregor Burns' hypothesis that moral development is a critical qualifi cation 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-dutyorientation, 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