It may help some from backward background to get a chance in life they otherwise could not - because the entrance to IITs and IIMs are heavily biased towards people who prepare for the exam for years and people from poorer backgrounds cannot afford it.
However - when it comes to graduation from IITs and IIMs - they will have to compete with merit students - and then only the talented once amongst them will survive and get good jobs.
Upper castes have nothing to fear as seats are protected by increasing intake and also that they will develop greater sensitivity towards their less sophisticated brethrens.