The term diversity basically means difference not inequality. Cultural diversity means existence of difference types of groups and communities practicing different cultures and norms.

India is said to be a diverse country because it has many groups and communities in it, which practices different types of culture. These communities may be distinguished on the basis of language, religion, caste, sector or race.

The toughest challenge faced by cultural diversity is the competition and conflicts between the variety of groups and communities due to difference in culture.

Sometimes cultural differences are accompanied by social and economic inequalities, which further complicate things.