Development does not take place in a vacuum; it is always embedded in a particular socio-cultural context. Transitions during one's lifetime, such as entering school, marrying, or retiring, are joint functions of biological changes and changes in one's environment. The environment can change or alter at any time during the individual's life-span.

According to the Life-Span Perspective, development is influenced by historical conditions. For example, the experiences of 20-year-olds who lived through the freedom struggle differ from those of today. An individual responds and acts on contexts, including social, historical, and cultural contexts. Life events like the death of a parent or an accident affect the course of one's life.

Socio-emotional processes influence development through changes in an individual’s interactions with other people, emotions, and personality. A child’s hug to her mother or an adolescent’s sorrow at losing a match are reflections of these processes deeply involved in human development.

Urie Bronfenbrenner’s contextual view emphasizes the role of environmental factors. Durganand Sinha’s ecological model for the Indian context highlights the "visible layers" consisting of home, school, and peer groups. Important factors include home conditions (overcrowding, space), the quality of schooling, and interactions with peer groups.