I was curious about how the Indians handle this, too, so I read Republic of Caste by Anand Teltumbde. It's a long, rambling, but detailed description of how the reservation system was playing out in India. Broadly, he argues that any initial positive effect has been displaced by caste becoming even more of a wedge issue (each caste feeling disadvantaged unfairly and hyper-vigilant for others' corruption) and castes scrambling for favorable designations (e.g. inventing a new history of victimization or fabricating a genealogy in order to be assigned to a more favorable schedule).
Ironically, Teltumbde advocates for replacing reservations with American-style affirmative action.
and this makes sense as well, I think while in practice the affirmative action in India seems ideal it is far too idealistic and one dimensional. Like just doing it on the basis of race would be in US.
Should an Asian kid coming from a family with financial difficulties be subjected to the same bias as others.
Also, I read a weird thing that in India even religions that don't have a caste system, have castes. It is interesting that Christians, Muslims can have one. It seems like that's one way to reap the benefits of the system.
Ironically, Teltumbde advocates for replacing reservations with American-style affirmative action.