A different 'race to the bottom'

India historically had a huge ancient caste system, mostly in part due to implication from Hindu beliefs regarding reincarnation (think of it as an expansion of the European "Divine Right of Kings" concept). Once the British left, India formed a very socialist government, including a number of tiers for status, lower ones receiving more favorable quotas ("reservations") in education and public-sector jobs.

The problem is that India doesn't have the US equivalent of a Regents of the University of California v. Bakke so it actually is quotas. And these quotas are quite lucrative. In fact, last year there was riots in Rajasthan by "members of a caste who are demanding to be socially downgraded in order to gain government jobs and university places."

At the same time, there is a clear backlash going on (both in India and in elsewhere), but a bigger problem for India may be a reduction in standards to get those students in. In 2006, the government proposed a 27.5% quota for Other Backwards Classes (OBCs) on top of the 22.5% for the lower ranked "scheduled" castes. There were massive riots by doctors, lawyers, and students in response.

There is a clear self-interest in organizations getting themselves rated lower in status. In the US, this also shows up in which ethnic groups are separated out in race and ethnicity calculations. For example, should it be just Hispanics or split even further? USC does but most places I know of don't split Indian, Pakistani or Sri Lankan into a separate South Asian category.