Does the problem still exist in India, heck yes, you have to visit rural area's in India and you will see it. Now we have moved on from the 1940's/1950 where people were totally segregated but there is still some seperation between the different caste's. If you sit in a A/C office in one of the metro's you are not going to see it. All you see then in the reverse discrimination. People in India are very good at finding loopholes, so the age-old mechanisms just find a newer way to discriminate
The Govt has responded with some "knee jerk" measures which have caused further rifts, like if you have someone from a lower caste managing an agricultural land for a upper caste person for more than(If I remember correctly) 3 consecutive years the person of lower caste ends up owning up the land. Again there are measures in education which have ended up lowering the standards of education.
But then nobody knows what would certainly work to eradicate this problem, You need legislators who care to fix the issue to be elected to the office. Unfortunately the caring educated elite just finds it too inconvienient to go out and vote on election day to vote for the right person and for the right reason but they(yours truly included) do find the time to complaining endlessly about the problems. So we end up getting these family politicians elected to office who again have any connections with the rural base. So the cycle continues and will continue