In the era of globalisation, the state changes its nature according to global forces. The focus of the state is more on the regulatory and controlling functions. So, the nature of the state has to continuously undergo change. The welfare state, as an institution, guarantees social welfare and social justice to the deprived groups, but globalisation has not only threatened it but also made it weak. In the contemporary context, the social welfare agenda has been taken over by non-state organisations that need to be carefully critiqued. The older theories of state, which are either inadequate or inapplicable, today cannot cover the new developments that have taken place in the era of globalisation and therefore they have to be reviewed, specifically in the contemporary context.