The Aryans further moved towards east in the Later Vedic Period. The Satapatha Brahmana refers to the expansion of Aryans to the eastern Gangetic plains. Several tribal groups and kingdoms are mentioned in the later Vedic literature. One important development during this period is the growth of large kingdoms. Kuru and Panchala kingdoms flourished in the beginning. Parikshat and Janamejaya were the famous rulers of Kuru kingdom. Pravahana Jaivali was a popular king of the Panchalas. He was a patron of learning. After the fall of Kurus and Panchalas, other kingdoms like Kosala, Kasi and Videha came into prominence. The famous ruler of Kasi was Ajatasatru. Janaka was the king of Videha with its capital at Mithila. His court was adorned by scholar Yajnavalkya. Magadha, Anga and Vanga seem to be the easternmost tribal kingdoms. The later Vedic texts also refer to the three divisions of India - Aryavarta (northern India), Madhyadesa (central India) and Dakshinapatha (southern India).
Larger kingdoms were formed during the later Vedic period. Many jana or tribes were amalgamated to form janapadas or rashtras in the later Vedic period. Hence the royal power had increased along with the increase in the size of kingdom. The king performed various rituals and sacrifices to strengthen his position. They include Rajasuya (consecration ceremony), Asvamedha (horse sacrifice) and Vajpeya (chariot race). The kings also assumed titles like Rajavisvajanan, Ahilabhuvanapathi, (lord of all earth), Ekrat and Samrat (sole ruler).
In the later Vedic period, a large number of new officials were involved in the administration in addition to the existing purohita,senani and gramani. They include the treasury officer, tax collector and royal messenger. At the lower levels, the administration was carried on by the village assemblies. The importance of the Samiti and the Sabha had diminished during the later Vedic period.
Iron was used extensively in this period and this enabled the people to clear forests and to bring more land under cultivation. Agriculture became the chief occupation. Improved types of implements were used for cultivation. Besides barley, rice and wheat were grown. Knowledge of manure was another improvement. Industrial activity became more varied and there was greater specialization. Metal work, leather work, carpentry and pottery made great progress. In addition to internal trade, foreign trade became extensive. The Later Vedic people were familiar with the sea and they traded with countries like Babylon. A class of hereditary merchants (vaniya) came into existence. Vaisyas also carried on trade and commerce. They organized themselves into guilds known as ganas. Besides nishka of the Rig Vedic period, gold and silver coins like satamana and krishnala were used as media of exchange.
The four divisions of society (Brahmins, Kshatriyas, Vaisyas and Sudras) or the Varna system was thoroughly established during the Later Vedic period. The two higher classes - Brahmana, and Kshatriya enjoyed privileges that were denied to the Vaisya and Sudra. A Brahmin occupied a higher position than a Kshatriya but sometimes Kshatriyas claimed a higher status over the Brahmins. Many sub-castes on the basis of their occupation appeared in this period.
In the family, the power of the father increased during the Later Vedic period. There was no improvement in the status of women. They were still considered inferior and subordinate to men. Women also lost their political rights of attending assemblies. Child marriages had become common. According the Aitreya Brahmana a daughter has been described as a source of misery. However, the women in the royal household enjoyed certain privileges.
Gods of the Early Vedic period like Indra and Agni lost their importance. Prajapathi (the creator), Vishnu (the protector) and Rudra (the destroyer) became prominent during the Later Vedic period. Sacrifices were still important and the rituals connected with them became more elaborate. The importance of prayers declined and that of sacrifices increased. Priesthood became a profession and a hereditary one. The formulae for sacrifices were invented and elaborated by the priestly class. Therefore, towards the end of this period there was a strong reaction against priestly domination and against sacrifices and rituals. The rise of Buddhism and Jainism was the direct result of these elaborate sacrifices. Also, the authors of the Upanishads, which is the essence of Hindu philosophy, turned away from the useless rituals and insisted on true knowledge (jnana) for peace and salvation.