Don't fall into the same judgmental trap as everyone else. The British are human, and as humans, they are not perfect. Some of them are probably racists, but it is not fair to label all of them as such based on this book.
Now, with regard to the book and the other answers you have received, it is imperative that you consider lack of education on the Indian culture. Much of what is construed as "racist" behavior by the Indians on the part of the British is simply a breakdown of communication based on cultural differences. The Indians do not fully understand the British culture, and the same is true for the British and their lack of understanding for Indian culture.
It is my belief that the British are simply trying to keep order and also to fit into a society that is not inherently theirs. Aziz attempts to be friends with the British, and falters. Their mistakes are made innocently, and in some cases, the person making the mistake never even knows it. The other party is insulted and does not speak of it, and the person who did the "insulting" thing never recognizes his/her actions as being offensive.
True, the British can be a bit condescending to everyone, but the disasters which occur in this novel are not entirely their fault. Be fair, stand back, and take a good, long look at culture, values, belief systems, and human nature before passing judgment so harshly and so definitively.
The British in their own way have been racisist, we see that constanly throughout the book. Sadly, even the high officials and people (british) show no respect , not even wanting to breath the same air they do. cmon there in India (WHY??????)
i think the british are morely racist than anything else. they believe their above the indians