Kaliali is a slur used to describe Indians in a derogatory way. Malu is actually short for "Maliali" which is spelled Malayalee. Specifically South Indians from the state of Kerala in India
The word Kaliali is a racial slur that has been used historically to degrade and dehumanize indians. The word is still used by some people for this purpose, and it is seen as offensive and hurtful to indians. If you are unsure about whether or not it is appropriate to use the word Kaliali, it is best to err on the side of caution and avoid using it in any situation.