Naya Kadam is a social romantic drama. The movie revolves around a village that is oppressed by evil tyrants, Madhukar (Kader Khan) and Jaggu (Om Shivpuri), who suppress the villagers and deprive them from receiving adequate education to continue to dominate them and rule over them. However, one of the villagers, Ramu (Rajesh Khanna), decides to go against the two men. He gains education from a school teacher, and is all set to teach Madhukar and Jaggu a lesson, and bring end to their terror. Will Ramu succeed to set free the villagers from the dominance of these two evil men?