Racism is an age old malady in Indian society. India does not have any moral ground on racism since are hierarchical thinking is built into our psyche. We are a society of colonial servitude .
We Indians care so much about caste and clannish mentality . We are pathologically inferiority/superiority complex oriented society. We have no moral grounds to blame Aussies about sledging when we have our own house unclean.
Probably we should take it as a lesson instead of hiding behind denial. Fundamentally we are a very hierarchical society ourselves. A nation cannot call itself a super power unless it faces its own ugliness in the face of international criticism. U.S is learning it the hard way. We are long way from being a super power. But if we even want to entertain such a wish we better get our act together first in the area of class, race , caste etc.