I have just read, and can highly recommend, the Folktales of the Punjab by Flora Annie Steel. Its a little dated, written over a hundred years ago by a Britisher, but took me utterly by suprise with wild and wonderful tales and fables which I had never heard before. Think of it as a cross between Aesops fables, and the Arabian Nights, and the Brother's Grimm.
On a similar vein, there is also a great collection called 'Folk Tales of Bengal' by Lal Behari Day, fantastically illustrated by Warwick Goble. Wider-a-field the questioner is recommended to access Panchatantra, Jataka collections which are available in many forms.