[link|http://www.countercurrents.org/sikand150204.htm|Counter Currents]
Although the Qur'an insists on the radical equality of all Muslims, caste (zat, jati, biraderi) remains a defining feature of Indian Muslim society, with significant regional variations. While the severity of caste among the Indian Muslims is hardly as acute as among the Hindus, with the practice of untouchability being virtually absent, caste and associated notions of caste-based superiority and inferiority still do play an important role in Indian Muslim society. In most parts of India, Muslim society is based on the existence of numerous endogamous and generally occupationally specific caste groups, that have their own caste appellations. This disjunction between Qur'anic egalitarianism and Indian Muslim social practice has been theorized by Muslim scholars in different ways. While some have sought to reconcile the two by interpreting the scripturalist sources of Islam to support social hierarchy, others have pointed out that the continued existence of caste-like features in Indian Muslim society is a flagrant violation of the Qur'anic worldview.

Here is a long article that seems to cover the matter in detail.

The only thing I would add is that the article is written from a modern muslim perspective and claims to more equality among muslims then actually exists.

India is worse then the rest of the muslim world, but most muslims countries have some sort of caste/ race/ tribe/ class stratification. Most of them are based on tribal / racial lines, with groups that have more historical power and groups that converted earlier being higher.

Muslims talk about all being equal before Allah, but in reality it sits beside the idea that being saved in an evangelical church makes you a better person. They talk about it a lot, but objectivly it doesn't hold any water.

Jay