The 42-year-old actress, who filmed part of her new movie Eat, Pray, Love in India in September 2009, said that Hazel's twin brother Finn and other son Henry, 2, also embraced local culture while they were in the country.
"To be in India is to experience India. It is not that you have to go find it. It is all right there," Roberts said on The Oprah Winfrey Show.
"The children love it. Hazel said when she grows up, that's where she's going to live.
"My kids were really into the culture of every place we went. Hazel also wanted to shave her head, so I let her shave the back half of her head. They would chant, and they were just interested."
Roberts and her family travelled to Italy, India and Bali to film for Eat, Pray, Love.
The movie, which is being produced by Brad Pitt and directed by Ryan Murphy, is based on the book by American author Elizabeth Gilbert. It is due to be released in August 2010.
