The Shadow Lines Lesson Plan

What purpose does the following passage, a brief exchange between the Shaheb and Mike, have in the text?

“Mike shut one bleary eye and looked him up and down— You don’t look like much of an Indian to me, he said. Killed any Englishmen yet?” (62).

Strong responses will point out that this is a way to show the reality of the racism that existed at that time in London, particularly against Indians. Specifically, the man feels the audacity to say this to the Shaheb's face, showing that he doesn't feel ashamed of his racism. This scene present's Mike's type of comment as normal and not in any way discouraged. Also, he's making a racist comment that is referencing an idea...