I think Stewal has the right idea. If you have to make a panic maneuver, it's because you failed to anticipate the potential scenario that was unfolding. Granted, in a truly chaotic situation like urban India, this may be nearly impossible, but you are far better off focusing on anticipating and avoiding, since once you're in a tight situation your options may be very limited.
I live and ride in NYC, which is a crazy traffic environment by North American standards, although I concede it's nothing like the subcontinent even though that's where most of our taxi drivers come from. From decades of experience, beginning as a kid on a bicycle, I've somehow developed a good knack for this kind of thing. I would say I need to make a sudden stop or turn to avoid a collision maybe two or three times a year at most, riding over 20,000 km/year, I always look as far ahead as possible, and try to position myself so I never have to rely on the other road users seeing me and yielding to me.