Caste has been considered an economic aspect of a group of individuals in the Indian content. It is property and the value of the property in raised or reduced directly in proportion to the ritual status in the social order of Hindu society. The new economic policy has provided opportunities to the upper castes to consolidate their social and economic power by deals and mergers. Social inclusion in a comple and multi-dimensional concept that cannot be measured directly. Social inclusion and division of marginalized groups resulted in their assertion and empowerment and seeking human dignity in the social order. The origin and historical background of marginalized groups, in enumerating the origin and background of marginalized groups in Andhra Pradesh. It is clear that the marginalized groups suffer from social identity and social inclusion. These sections have been denied of their just rights and consequent to that lot many social movements came into existence, the discrimination and exclusion encountered by marginalized groups in Indian society. Marginalized groups were pushed into backwardness in terms of economical, social, political and cultural identities. This once again speaks deliberate action plan of upper caste people to suppress them. Caste and Class system in India which throws light on the age old caste structure and its influence on the social system. Marginalization is a slippery and multi-layered concept, but society can be marginalized at the global level while classes and communities can be marginalized from the dominant social system. It is observed that the marginalized suffer the greatest loss of rights and opportunity, for which the caste system remains most strongly a reality.