Just to add my two pennies (rupees?) worth. I too am a uk born Indian/Englishman of indian origin/British Hindu, with the added benefit of being told i look Middle Eastern. Had similar worries when i was young and was desparate to become a pilot. I went through the training system right about the 9/11 time and am subsequently working for a loco - not once have i encountered any sort of discrimination or racism. If anything my ethnic background is usually of great interest to the crews i fly with and i often enjoy regaling my colleagues with strange tales of weddings that last a week with a 1000+ guests and festivals which seem to crop up every other week based on the lunar calendar.
Though having just successfully passed the airways selection procedure i was actually starting to think that all the hard work and blood, sweat and tears had paid off. How naive of me! I realise now i only got in because of the colour of my skin. Makes a little more sense considering the ropey sim check i had.
Joking aside there may be some postive discriminiation out there unfortunately. Myself and a friend of mine won some flying awards from our training provider. On closer inspection we noticed that i was brown and my friend was female - talk about wheeling out the minorities for the awards bash
Good luck RoyBoy et al.