Seems so. Or more to the point of how data collected in the UK might reflect this trend (from the article you link): "According to a 2005 BBC report on Pakistani marriage in the United Kingdom, 55% of British Pakistanis marry a first cousin."
AFAIK this is far more common in muslims but not in hindus, jains etc. While growing up I had heard/read that as per the Vedas you can not marry someone with whom you have a common ancestor within 7 generations. [My scientifically minded atheist parents agreed with the idea.] Of course, in practice this isn't always followed but in any arranged marriage such proscriptions would presumably be checked.
The crazy thing is India has ample population to avoid this problem. It's not some isolated tribe or small island community. The reasons have to be social/political.