The Indy flicks are a throwback to a time in cinema that was, yeah, pretty racist. Spielberg and Lucas fall back on a lot of stereotypes from that era to flesh out their characters. It's a narrative shorthand that you can't get away with anymore in mainstream film --- probably for the better. Is it mean spirited? Probably not, both Spielberg and Lucas have made films about overcoming racial adversity such as A Color Purple, Amistad and Red Tails so I think they're on the right side of history in terms of equality. Are they particularly culturally sensitive artists? Eh, probably not. I don't think Steve or George have it out for India for instance, but if I was a young boy from India and I saw my country portrayed as a place where people eat snakes, enslave children and rip each other's heart's out, I'd probably be upset.