Elsewhere in the world, we'd all it xenophobia, or Indophobia if one has something against Indian people specifically.
Though in this case, it's driven primarily by economic stereotypes, coming from the country becoming a cheap services outsourcing destination for the West, so there should be a better term coined for it. The anti-Indian sentiment in IT seems to be the services equivalent of the common "Made in China = cheap crap" belief, and because it applies to services and not products, it turns into discriminating people.
Even of you replace 'reality' with 'true' amd 'truth' the logic doesn't quite work out.
If I replace "reality" with "truth", it does not work out because it makes no sense: "truth cannot be racist" makes no sense whatsoever. In relation or correspondence to what? It does work with reality, however.
As a comment on "Reality cannot be racist".
FWIW my best friend is South Indian. In the North, he is hated for unknown reasons, different caste or whatever, I do not know. He usually tells me everything about Indians that I do ask.
Another FWIW, he likes a barista (he is currently studying in the UK where he does not face any racism), and he came to me with help as to how to approach her. It is a good thing he did (he admitted it) because he would have ruined it by seeming so desperate, which seems to be a common trend among Indians, too. This is reality, too. To what extent? I do not know, but enough to notice. He is otherwise (despite being an Indian) a very well-mannered, curious, and smart person. He does seem to care much less about hygiene than one should, and blames things on diet, rather than just lack of hygiene. We discussed it in detail and he agreed, eventually.
While we are at it, I dislike Indian accents, too, generally. This is a preference. It does not make me racist. Do you think it does?
At any rate, if you have any questions, I am willing to answer (with his permission if it concerns him), but ultimately, I do not think it is racist.