Unfortunately what you say is quite true. (Am from India myself). The educated lot who have seen more of the world are not so bad. But yea, your point is valid esp among the very orthodox.
Most of the Indians you and I know are high-caste who have cast off the trappings of privilege to live a Western life. But there remain a few who never assimilate, who really despise the "foreign" untouchable while bitterly envying the white skin of many Americans. Yeah, there's a racism to the caste system which can really surprise!!