No, Indian society does not label children anything other than children at birth. It is a label gratuitously applied by the author, likely as a short-hand to indicate poorer section of society. People from these self-identified sections have reached the highest post in the country - from writer of the constitution to president, to various positions in the political spectrum. There is a problem of equal access to education, yes. But a) this problem exists all over the world - consider school districts in the US and b) is more acute in India due to large, distributed population against a largely agrarian/human labor based economy. Active discrimination is a much smaller factor.