Stereotyping is a part of the brain possibly as a defence mechanism for the primitive man. Are stereotypes bad? Not at all. We are able to distinguish a banana from an apple only with the built-in mechanism of stereotyping and it is unavoidable by most of us.
Are there negatives associated with the perceptual process? Like the functioning of the mind, stereotypes also have a flip side. We are a part of the culture we live in, and it provides unconscious input to stereotypes, and the images creep into our minds without asking for permission from our logic.
At a fundamental level, a stereotype is a thought that is biased. With a stereotypical thought, the least we can do is to ensure that it does not create a negative emotion, worse, lead to any kind of discrimination. Given India‘s cultural and economic social diversity, our mind is likely to be a fertile playground for the generation of stereotypes.