Social and economic inequalities: Contemporary significance of caste in India

Economic and political development during the colonial rule and its aftermath led to the breakdown of the caste system. Caste status no longer inhibits individuals from taking to new occupations. Centuries of socio-physical segregation and illiteracy compromise their position in today's economy and society, including preventing them from taking advantage of the emerging so-called “caste-neutral” occupations and India's modern economy. Social seclusion is said to have led to economic deprivation. And hence the essence of government policy in an attempt to reduce poverty and rehabilitate the poor-rested on the reservation policy since independence.