Research on the contact hypothesis has highlighted the role of contact in improving intergroup relations. Most of this research has addressed the problem of transforming the prejudices of historically advantaged communities, thereby eroding wider patterns of discrimination and inequality. In the present research, drawing on evidence from a cross‐sectional survey conducted in New Delhi, we explored an alternative process through which contact may promote social change, namely by fostering political solidarity and empowerment amongst the disadvantaged. The results indicated that Muslim students' experiences of contact with other disadvantaged communities were associated with their willingness to participate in joint collective action to reduce shared inequalities. This relationship was mediated by perceptions of collective efficacy and shared historical grievances and moderated by positive experiences of contact with the Hindu majority. Implications for recent debates about the relationship between contact and social change are discussed. Copyright © 2016 John Wiley & Sons, Ltd.