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Caste is highly correlated to skin pigmentation, so in practice... this would be almost indistinguishable from regular old racism.

It's not at all highly correlated, and skin color certainly wouldn't trump real caste affiliation.

Additionally, there's north/south discrimination, with greater antipathy from southern Indians against northern Indians.

Please see https://news.ycombinator.com/item?id=23799512 for a recent paper which reports that it is.