Though mostly outlawed, the Indian caste system continues to be one of the key players of inequality, poverty and discrimination in India. This article is trying to explain the myth and reality of the caste system. Data wise, a large number occupy top positions by upper caste people whether it is public or private institutions, not SC, ST. Traditionally the maximum land is occupied by general caste people, and SC and ST are dependent on wage labor. So this article provides a logical answer to this type of growing debatable topic. There is a glimpse of similarity between the caste system and world system theory. It also focuses on the unholy nexus between caste and alienation in India.