Well, the caste system exists and the inequalities exist - but they exist purely due to economic and political incentives.
Belief in karma and reincarnation has got nothing to do with it. And even the victims of this system know this.
Belief in karma and reincarnation has got nothing to do with it. And even the victims of this system know this.
There is also some modern, relevant benefits to identifying someone's caste: it is an indicator that someone comes from a similar cultural or religious upbringing. That you speak similar dialects of Hindi. This is important when, say, marrying.
This says nothing of the caste system as institutional discrimination, but it's worth mentioning that caste is not "purely" an economic/political bit of culture.
* http://en.wikipedia.org/wiki/Dalit
* India Untouched - http://www.imdb.com/title/tt1552060/
* India's broken people - http://www.youtube.com/watch?v=sxJr0UlcNTA
There is whole sect in India which is segregated, tortured everyday for being born as a lower caste and it does not even end with their death. They have to clean others' feces by their hands (yes even today) and this is considered a norm. Rich, higher caste still instill this in their own kids to be wary of the "dirty people". Kids born into Dalit families are reminded of this by not letting them eat with other kids, not letting them wear same clothes and being asked for their caste again and again. This system is kept alive.
This all still exists and is in abundance. Point to note is that this is not just in rural, uneducated parts of India. Honestly, the concept comes from Hinduism. As a major religion for centuries, it has a code-of-conduct by Manu to divide the society into 4 major parts. But now it is a part of every sect in practice.
It exists and it is social.