Chatterjee has written a handful of short stories of which "The Assassination of Indira Gandhi" and "Watching Them" are particularly noteworthy. His best-selling novel, An Indian story (subsequently made into a major film), was published in 1988 and has since been reprinted several times. A review in Punch described the book as "Beautifully written … English, August is a marvelously intelligent and entertaining novel, and especially for anyone curious about modern India". The novel follows Agastya Sen - a young westernized Indian civil servant whose imagination is dominated by women, literature and soft drugs. This vivid account of "real India" by the young officer posted to the small provincial town of Madna is "a funny, wryly observed account of Agastya Sen's year in the sticks", as described by a reviewer in The Observer.