Caste system is slowly diminishing even in India, because these days its mostly love marriages and parents cant really stick on to their religion or caste. But in olden days it was mostly arranged marriages and these upper class lower caste gap was more. There are lots of awareness programs about the importance of Education. In schools and colleges there is no restrictions on caste so they alls study together and mingle together.

So the caste difference is not a major issue with this new generation. Basically lower caste people as economically backward even today, because they won't have any ancestral property of wealth to inherit.

Corrupt politicians and government officials is also responsible for the poverty.