Greeting accepted by oddly shabby European in India (5)
I believe the answer is:
sahib
'european in india' is the definition.
(I've seen this before)
'greeting accepted by oddly shabby' is the wordplay.
'greeting' becomes 'hi' (hi is a kind of greeting).
'accepted by' is an insertion indicator.
'oddly' indicates alternate letters.
The alternate letters of 'shabby' are 'sab'.
'hi' put inside 'sab' is 'SAHIB'.
(Other definitions for sahib that I've seen before include "Polite form of Indian address to a man" , "Indian title of respect" , "Respectful form of address to Indian man" , "Indian term of respect to a man" , "Former Indian title" .)