The caste system exists, despite being illegal, and it is abhorrent. It is a socio-economic order that exploits and demeans the lower section of the order, today known as Dalits. The crucial point is that the grouping within the system is hereditary. The caste system has been historically perpetuated by stating that it has religious sanction.
Many Hindu academics deny the religious basis of the caste system, as it exists. They claim that the system as originally propagated in the scriptures is merely a system of division of labor, that is essential for societal functioning and that exists in every society. The position a person occupies in the system is based on ability and not birth.
We have seen that Hindu scriptures embody a wide range of often-conflicting beliefs. Hence it is easy for both the proponents of the religious basis of the caste system and its opponents to quote from the scriptures. Many times quotations are taken out of context. However the fact is that this debate is purely academic and diverts from the issue at hand.
Today the need is to get rid of this system, whether it at one time had a religious basis or not. Most Hindus believe that religion evolves and even if Hinduism at one time supported a hereditary caste system, it cannot do so now. But getting rid of the caste system is easier said than done. Some of the impediments are listed below.
Therefore for every one step taken forward the Indian society is taking two steps back and therein lies the problem.