When in rome,most people want to fit in and"do as the romans do"...within reason of course. I was born and raised gori so when I went to Pak to meet the family of the man I was to marry, I gave each a big hug and kiss on the cheek as would be expected in my culture. To my extreme embarrassment, I found out well after the trip that they were all likely horrified. I even gave my husbands brother a kiss on the cheek and a hug upon our meeting. I had absolutely no designs whatsoever and absolutely no sexual desires of these people I would call family. Luckily for me, they all just kind of looked at me funny and accepted me for me.
Westerners are far, far more physical people than are desis and this does not mean that there are any sexual overtones.
That said, its still a good idea to watch over your spouse and the doings....but I'd be far more uncomfortable with a spouse who refused to talk about office parties than a spouse who not only talks about them but invites the wife, takes photos and then shows her!!
lolz....my husband did something really silly like that when he came to see me after the engagement, he hugged me in front of everyone (including my father) and I was so embarrassed but I think he quickly realized that..... but he's changed a lot since that day. lol