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.