And it wasn't the depiction due to the time period the Indy film was set in that made it racist, it's the depiction of Indians as primitives who eat monkey brains and all that rubbish. It was just a trope in the '80s. If they aren't from the West, they must be primitives, etc.
It's like saying the movie implies Indians can rip your heart out of your chest if they chant "Kali ma shakta di" or anything like that.