The caste system in India is an old one. Traditional life of the India’s rural areas or villages is depended on caste. Many persons who belong to the upper caste own the land and can exercise monopoly power. The lower caste persons, called ‘untouchables’ are available to provide services to people from higher caste. Each caste had their classic occupation. In this caste system, lowest caste (Dalit) as per the categorization, belongings hold the low paying jobs like labourers for the agriculture and safai karamchari (sweeper). The term untouchability is used for Harijan (low caste) because these Harijans are not allowed to enter in the temple, use public wells, enter in the house of dominant caste and precluded from the attending the festivals of the villages. The Harijans are compelled to live separately from the other high castes. In this paper we examine the present caste system in India and the discrimination faced by the lower castes. This discrimination over a period of time shows people are prevented from using the wells, entering temples in India (especially in rural India). But the form of discrimination has changed currently both in rural and urban India namely in the employment sector etc., e.g. after getting higher education, there is presence of caste discrimination which prevents the people from lower castes to go for a jobs that pay higher salaries. In this paper we try to present the problem of caste discrimination and some possible solution to this problem e.g. affirmative action in India. Also see the possible consequences of such an affirmative action.