This factor is of unique importance in social change. Stages of economic development in human history are not limited to economic transformation in society. They promote large scale political and social transformations. Economic development affects different institutions. The growth of large-scale industries led to employment opportunities, professionalism, exploitation, trade unionism and so forth. Economic competition has resulted in class-conflict increase in materialism in the society. The class divide continues to this day.

For example, peasant movement, women’s movements, labour movements, student movement, tribal movement etc. for conflict theorists – conflict is considered a basis for change in society. Globalization as a process continues to have a huge impact on Indian society. The LPG policy adopted by the government of India in 1991 has led to far reaching consequences on our political institutions, economy, family, education etc.