Local issues or problems which are not given adequate importance by the central government are addressed by the local parties as they are aware of the issues and their intensity. Sometimes these political parties are emerged out of some backward class movements as for example Bahujan Samaj Party. They are directly or indirectly helpful in upliftment of oppressed and lower classes to which they belong. These parties lead to growth of regionalism as there is feeling of loyalty to the party. This aspect is often exploited by regional parties for their vote bank. Politicization of regional issues like formation of separate, development of particular area become reason for the emergence and growth of regional parties.
The examples can be seen in the case of JMM,Telanga Rashtriya Samiti etc.Regional parties work against the spirit of nationalism. They become dividing factor as they emphasize more on fostering their regional interest.
They create a sense of deprivation among their region. The most glaring examples are the role of MNS and Shiv Sena in Maharashtra who thrive on Maharashtra pride and often create ruckus between local people and people from other northern states. In coalition era regional parties have become important and they can make or break a government and can create political instability in the country.