I think I've finally figured out the road rules in India. It took me awhile but I think I've got it. The right of way is given to the larger vehicle: a car yields to a bus, a rickshaw yields to a car, a bicycle yields to a rickshaw etc. The aforementioned rule is completely moot if a vehicle of any size is able to cut off or overtake any other vehicle and thus create their own lane of traffic. A cow and/or stray dog would have the right of way above all others. A pedestrian would never have the right of way. Ever. The car horn should be used randomly and often: it merely lets others know you are awake and still proceeding to your destination. A note on crossing the street: it's not advisable to "look both ways" as we were taught as children. I actually stopped doing this 3 days ago. Instead, find a local heading in your direction. Approach the local from behind, to the point where you are actually breathing on their neck (in my case I'm actually breathing on their head as they tend to be shorter than me). When they move, you move. If you can't follow this rule, you'll probably never be able to cross and forced to only see sights on your respective side of the street.
Even though I understand these rules, I'm still not ready to rent a car in India.