Yes, India is a feudalistic society and democracy, because many people in India still struggle for basic sustenance while being beholden to the government. India has a long ways to go until the vast majority of people do not live in poverty. Their democracy is not yet well developed, and it still has many characteristics of feudalism.
India is subject to a strict caste system, but it is not the official system. The official system of India is capitalism in terms of economics, and the official system for government is democracy, sometimes direct and sometimes in the form of a republic. India has extremely high inequality, but otherwise there is capitalism, as people own their own companies.