Are Indians racist? No. A lot of Indians may be xenophobic, but the prevalence is no more than it is in other parts of the world. Bring up a SINGLE country in the world where you think there is no racism. We are just more open about it, since there aren't 938493 laws in India to keep our sentiments bottled up.
For those who think Fair and Lovely concept represents racism, it doesn't. Fair and dark skin in India represent skin tones, not races. And contrary to the way it is portrayed in TV commercials, women rarely ever get rejected for a job on the basis of their skin colour alone.
As for matrimonial ads, the demand for lighter complexion is just a fetish. It is not racism, any more than my desire for slender women with beautiful face and good legs.