This article examines the persistence of group-based disparities in education and labour market outcomes in India. It argues that a possible reason responsible for this phenomenon is the existence of a self-fulfilling equilibrium trap. The social belief that certain groups are inferior leads to discrimination against them; over time, however, these communities start behaving in a manner that justifies society's perceptions about them, reinforcing and perpetuating initial disparities. The study uses NSSO data from the 68th round.