In the era of Renaissance, there was rise of towns and cities and growth of trade stimulated production of manufactured goods. Apart from rising demand, there were revolution in techniques and organisation of production. These developments resulted in the rise of new type of economy- an industrial economy.
The term Industrial Revolution is used to describe these developments because of their rapidity and far-reaching effects.
Fall of Feudalism and Rise of Capitalism
- After fall of feudalism, there was friendly relation between Capitalists and King. So, no danger of government interference.
- When church land was confiscated, new class consisting of rich land-owners and wealthy merchants emerged. So, plenty of resources.
- Consolidation of land also led to large army of landless unemployed people. So, can work in factories for wages.
- Discovery of new lands added to resources. Mines in Americas were exploited to gold and silver.
- Colonisation: Naked plunder in colonies led to huge resources (e.g. Plunder of Bengal in 1757) and also served as great market for finished goods.
- Factory system led to larger control over production and brought stability.
- Presence of large shipping industry.