The conversion is expected to be the largest in modern times |
The ceremony, at which ten of thousands are expected to embrace the Buddhist faith, is being billed as the largest religious conversion in modern India.
The converts hope to escape the rigid caste system in which their status is the lowest.
Right-wing Hindus have often opposed conversion, pushing some Indian states to restrict legal changes of faith.
The BBC's Zubair Ahmed, who is at the racecourse in Mumbai for the event, says 30,000 people are already present, although the organisers are not giving a figure for the total number they expect to convert.
Conversion controversies
The Dalits, once known as Untouchables, hope the conversion will give them dignity and equal rights.
"Once they convert themselves to another religion, the minimum they will get is treatment as human beings," Arun Khote of the National Campaign on Dalit Human Rights told the BBC.
Commentators say that despite the reservation of jobs for the Dalit and tribal communities, their social status and economic conditions have not greatly improved.
They say that Dalits still face widespread prejudice and discrimination.
Conversion is a controversial subject in India, especially if it involves Hindus converting to Christianity or Islam.
Two weeks ago two Catholic priests were publicly beaten after being accused of trying to bring a group of local people into the Catholic faith.
But converting to Buddhism does not evoke much adverse reaction, as many in India believe Buddhism is an extension of Hinduism.
Even so, several Indian states, especially the ones governed by the right-wing Bharatiya Janata Party, BJP, have made laws severely restricting conversion.
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