True, but it's only the partial truth - it gives a misleading impression about hindu-muslim relations in rural India.
In rural villages in India, every family or small community are insulated and prejudiced against another. Small "societies" (of a hundred or so people) consider themselves to b e one entity, and the rest of the villagers as the "other". This belief is reflected in all the marriage arrangements, and so on. So people from one clan or sub-clan (gotra?) consider themselves aloof from others, and so on.
(I'm not too informed about the caste and subcaste systems, but my point is that people in rural India are divided along much more intricate lines than just religion.)
Any village you go to, the people there are likely to build a wall around themselves on the basis of minor details, rather than along religious lines. So in a country where meenas hate gujjars, vannaiyar and paraiyar hate each other and so on, "hindu-muslim" is too trite a distinction for hatred,