I guess this does not stop in Jobs but also in VC Funding . Most VCs/Seed funds are run by few upper caste Indians . They do have discrimination if you come from a backward caste . if you belong to the same caste , chances of getting a fund are more .
I have heard this term often but never gotten used to it being used to describe an entire ethnic group nonchallantly - like the comment you are replyig to. I have had several conversations with Indian colleagues where some would use this term to describe other non-privileged classes as "backward" so matter of factly. This is racism of the quintessential kind.