I cannot imagine why you'd think The Economist is generally a racist publication. Have you ever read it? Really? I do not get such an impression from TE at all and I read it often.

As to this article, The Economist is reviewing a book by a third-party. If the facts are correctly quoted from the book, the book's sources are correct and the item is newsworthy, I see no problem at all with such a book review.

There need be no racial motivation for pointing out institutional failings in any country. India is an important country in so many ways, and the readers of The Economist would surely want to know about politics there.