Not surprising - and we need to stop being thin-skinned. Indian people, like White people, can be racist! I've lived in 4 different nations, and I've lived amongst Caucasians, Chinese, Indian, and Malay people, and I have to say this: Every race has a fair share of racists. It's not just a white-people thing. Half of my ancestors and relatives are Chinese, and half of my relatives are white and I've heard enough racist nonsense spoken by one side about the other. My White relatives will occasionally chime in about how all Asians are "good at math, but can't drive and are all sneaky", while my Chinese relatives will "delightfully" call white people "fat, violent red-apes" (despite being Chinese they use an old Malay insult against White people used because when the English first came to Malaysia, their skin would turn red due to sun-burn).
At least my mother and my father aren't racist. But I've dealt with enough racist crap my whole life to realize that it's EVERYWHERE. I've heard so many racist comments made by Indians against the Chinese and Vice Versa. I've heard so many Chinese being so horribly racist against black people. I've heard so many African people being racist, not just at other races, but even amongst themselves (Just ask a Somalian what they think of Ethiopians or vice versa, and you'll quickly understand what I'm talking about).
So is the fact that Indians can be racist shocking? No! I've heard even more racist smack-talk against Indians from Australians. When I was still in highschool, you won't believe the racist crap some of the white people said about Indians.
Indians are fully human - that means, like all humans, they are just as flawed as anyone else, just as susceptible to racism as any other group. I'm not surprised, or really offended that some Indians are racist - because EVERY nation has racists. Why are any of you surprised? It's human nature to try to talk up your ethnicity as being "the best" ethnicity. As a mixed-race person, such talk is ridiculous in my eyes. No ethnicity is "the best". All ethnicities are equally good and equally bad, and any study of history will show this. Sure, white people might have enslaved more people than any other group, but slavery isn't a "white" thing. All nations and all ethnicities have practised slavery throughout the ages. That doesn't excuse what the white people did, of course.
So some Indians are racist. Big deal. I'd be surprised if they weren't. Again, I've lived in many countries and I've met a loooooooot of different people throughout the course of my life. You think racism is bad in Western nations? Book a trip to Mainland China and ask them what they think of Black people. I have. I've asked my own relatives what they think of Black people, and their attitude would have shocked even a typical 17th century Englishman. The attitude of my white relatives towards my Chinese mother is scarcely better - at least they don't OPENLY insult her (they just casually throw out the odd racist quip which they think she can't understand).
EDIT: Also, I am an Australia - came over here on my Father's British Passport. I've lived here for almost my entire life, broken up by stays overseas. The amount of racism in Australia is NO WORSE than the amount of racism in any other nation. Racism does exist in Australia, to be sure, and it is bad, but it's no more prevalent than in any other nation. Malaysia is notoriously racist against anyone Non-Malay. Singapore, despite putting on a faux friendly multicultural face, is dominated by the Chinese and they are determined to make sure it stays that way. Australia has its fair share of racist nutters - and it goes both ways. I've had unpleasant encounters with White Supremacists, Asian Supremacists, Lebanese Supremacists (that particular encounter did NOT go well, no siree) and Indigenous Supremacists (they exist). The White Supremacists are the most threatening of the bunch by far, but the other groups definitely exist.
As an Australian, people, please - CHILL OUT. So an Indian firm made racist remarks about Australians. So what? Ignore em. Sticks and stones and the like, you know the rhyme. This is not an excuse to slag off on Indians. I went to the Courier Mail's website today and I read the comment section and you wouldn't believe the hissy fit some white people were throwing over this insult. Well, now that they know how it feels to be racially insulted, maybe they will be less racist in the future! If you turn around and start shouting racist insults to Indians (as some people were doing in the comments section of the Courier mail story), you're a hypocrite.