Got the confirmation from the dealer. It is a PAV, thank you for the explanation. The dealer apparently gave me somewhat confusing information:
DEALER:
The Item that the Yellow arrow is pointing out to is a Pulse air Valve used to supply air to the throttle body as and when required.
This item is only in the Indian Bikes as it is not required in UK due the the atmospheric conditions. Due to our Country being so hot and Humid we have this Mechanism.
Otto,
You do not need to worry about that PAV device interfering with any part of your engine's performance, as long as it has no air leaks in any of the hoses or fittings.
It is purely extraneous to anything except emission control. Many people just remove them, along with all their corresponding plumbing, and plug all the fitting holes. That will not affect running in any way. You will not need that device for hooking up a Power Commander, and a Power Commander does not need the O2 sensor or the bung on the exhaust header for the O2 sensor, so your exhaust pipe will be fine for using a Power Commander if you decide to use that.