The caste system formed the basis of village economy and jajmani system was the economic basis of caste system. With the introduction of technological innovations, market economy and backward class and dalit mobilization, the jajmani system declined which was essentially a system of production and exchange of goods and services. In the urban areas because of new occupational structures, an occupatian free caste structure emerged. Caste and occupation were delinked because recruitment to the new occupation was based on technical skills which could be acquired through formal modem education.
Though modernity has entered into Indian character and society, it has done so through assimilation, not replacement. A member of castes have joined hand to protect their class interests. Continuity of caste can also be seen in that with the new forces of change, the powerful, wealthy upper castes e.g. Brahmins, Rajputs benefited from these changes. Thus, castes as a unit of social organization has survived because of its adaptive capabilities.