Chapter 5: INDUSTRIAL REVOLUTION

History of Methods of Production before Industrial Revolution

• The method of production of goods first transformed from Guild System to Putting-Out System and then to Factory
System.
Guild System
• To cope up with the demand due to increased trade and towns as well as specialization in crafts, a change in method
of production of goods was felt necessary. The Merchants and craftsmen in towns started to organize themselves in
Guilds, which were specific to the good being produced, e.g. Guilds of Goldsmiths, barbers, leather-workers etc.
Under the Guild system, there was a Master Craftsman with three to four workers or apprentice working under him.
• There was decline of the Guild System, when the volume of trade increased further and the Guilds were unable to
cope with the demand as they were unsuited for mass production. This resulted in coming of Putting-Out System.
Putting-Out System:
• Under this system, the raw material and the final product were owned by the merchant and the worker was
only a wage earner. The site of work was the home or the backyard of the worker. The Merchant would have
the responsibility of providing raw material and collected the final produce. The invention of machines changed
everything and even this system was replaced by what is called as the Factory System.
Factory System:
• Under this system, the centre of production shifted from home to the factory. The workers, for the first time
now, travelled from home to work-sites on daily basis. They for the first time aggregated in such large numbers
under a shed working on machines. The capital was owned by the Capitalist and the worker was just another
factor of production and the capitalist was the owner.

INDUSTRIAL REVOLUTION; The Industrial Revolution was the transition to new manufacturing processes in the period
from about 1750 to sometime between 1820 and 1840. This transition included going from hand production
methods to machines, new chemical manufacturing and iron production processes, the increasing use of steam power, the
development of machine tools and the rise of the factory system.
Textiles were the dominant industry of the Industrial Revolution in terms of employment, value of output and capital
invested, the textile industry was also the first to use modern production methods.
Note : It was a revolution because it totally reformed not just the economic sphere but also the social and political sphere of
the society.

• The Industrial Revolution was a transformative era that transformed societies from feudal, agrarian economies to capitalist,
industrialised systems. Originating in Britain, it rapidly spread to the United States, Western Europe, and beyond. At its core,
this period witnessed a paradigm shift from handcrafted production to mechanised manufacturing, driven by advancements in
technology and industry. It marked the transition from feudalism to capitalism as the dominant mode of economic
production.
• The Industrial Revolution profoundly reshaped social and economic structures, reorganising industry operations and paving
the way for modern civilization's emergence. This transformative period laid the foundation for the mechanised and
industrialised societies we know today, forever altering the course of human history.

Nature of industrial revolution ;

There were 4 sets of changes
a) Introduction of new technology;
Textile ; until 18th century the manufacturing was done by hand.
In 1767 James Hangreaves introduced the spinning jenny which increased the amount of cotton yarn that could be spun.
In 1769, Richard Awkright introduced water frame which produced stronger wrap yarn.
In 1779, Samuel Crompton combined the jenny and water frame into one machine called MULE, which was 300 times faster
than humans in term of producing yarn
In 1787, Edmund Cartwright invented the power loom.
Steam engine; it was invented by James Watt in 1769 to pump water out of mines. It was used to raise minerals from mines,
provides heat for smelting iron ore, and drive machines in textile mills.
Revolution in Iron Production
Another revolution was in Iron production, which ultimately led to increased and cheaper mechanization of all industrial
processes. The Steam power had led to demand for more machinery and England had huge deposits of iron ore and coal to
make steel. But where England lacked was in the cheaper mode of processing raw iron. This problem was resolved by the
 development of Blast furnaces, which allowed for use of coke instead of charcoal. This allowed the British steel industry to
produce high-grade cast iron instead of just the pig iron.
b) Use of new mineral sources of energy; coal was used to produce high temperatures needed to smelt iron. It also became a
source of heat for the steam engine.
c) Concentration of workers in factories; it led to the development of factory system. The large factories were cost effective
because it allowed the concentration of machines and workers in one place. It also reduced transportation cost and allowed
for greater quality control.
d) New methods of transportation; as the industry expanded, new transportation network needed to move raw materials and
finished products.
Huge numbers of canals and all weather roads were built in 18th century
Main innovation in 19th century was railway tract and steam power locomotives (engine) which provided quick, cheap
transportation to places which could not be accessed through waterways.
The construction of railway tract requires iron and large number of workers and became an industry in its own.

Factors Responsible for Industrial Revolution (IR)

1. There was a collapse of feudal system. Feudalism was replaced by the capitalism. This infused new life into economy and
society.
2. The period saw tremendous growth in science and technology.
3. Growth of population led to increasing demand. Existing techniques were not sufficient to meet the demands and hence there
was a need to find efficient modes of production. The dictum ‘Necessity is the mother of Invention’ could never have been proved
true than during IR.
4. Due to brave efforts by sailors, new colonies and world trade routes were discovered. Queen Elizabeth-I started the official
policy of settlement in North America which finally gave birth to 13 colonies.

INDUSTRIAL REVOLUTION IN ENGLAND;

The Renaissance & Reformation with focus on power of reason and logic had already made a psychological impact on the people to
set out in quest for new ideas. Furthermore, the society in England had moved towards democracy (Glorious Revolution 1688),
which allowed greater freedom of thoughts.

Important causes for industrial revolution in England are as follows:

1. England enjoyed a stable political system. The environment was peaceful that means no intra clashes in the society. On the
contrary France, Germany and other European nations were unstable.
2. It had a strong navy and shipbuilding industry.
3. Britain was a large empire. A popular saying went that “Sun never sets in British Empire”
4. It had abundant natural resources which provided raw materials for its industries. The location of the coal and iron mine close
to each other also favored industrial revolution.
5. Colonies served as supplier of raw materials and readymade market for its goods. Import duties on British goods were
abolished while export duties on native goods were raised.
6. It was the birthplace of many scientific discoveries and technologies. It had a progressive attitude towards science. There were
organizations like Royal Society of London focused on Research & Development.
7. Enclosure Movement led to eviction of small farmers which led to increased labour supply in cities. Extensive agriculture took
place and the surplus yield is produced.
8. Cheap and skilled labour released from handicraft and handloom industry.
9. Agricultural revolution in England produces a great surplus to the economy. It is mainly due to discovery of new tools and
equipments like thrashing machines etc, which leads to reduction in labour force. As a consequence, huge labour force turned
free from the clutches of feudal lords and they started looking for alternate employment. Finally, they got absorbed in Industries.
10. Separation of English church from Roman church. Now they are not required to give 1/4th of agricultural produce to Rome, so it
also increases the national income of England and hence the economic prosperity. This surplus production was used in
Industries.
11. Presence of enterprising people in England : people having entrepreneurial spirit and their risk taking capacity contributed to the
industrial revolution.
12. Better means of transport : The development of transport corridors in the form of rail-road network across the length and breadth
of England and consequently in colonies of British empire allowed the British industry to hasten the supply of raw material and
finished g oods.
13. Favorable geographical location: being cut from mainland Europe, England remained immune from wars and upheavals of
Napoleonic conflicts and conditions remained quite stable in the country.
Conclusion: Thus, it can be said that the system of polity, political independence, security from invasions, the availability
of labor and capital along with law & order stability were the major determinants of the Industrial revolution. Britain
was the first to industrialize not because it had better intellectuals but due to existence of favorable conditions as
mentioned above. When these conditions became prevalent in other countries, they soon embarked upon Industrial
revolution. These conditions on the other hand never existed at the same time in colonies like India.

INDUSTRIAL REVOLUTION OUTSIDE ENGLAND

• In Europe, the end of Napoleonic wars in 1815 brought an atmosphere in which the nations could focus on Industrial
development. Machines were introduced in many European nations after 1815, but the movements for democracy,
independence and unification of territories didn’t allow Industrial Revolution to take root till 1871.
• FRANCE: It had unstable political system and there was wide unrest among people. The situation therefore was not conducive
for industrial advancement. By 1850, the iron industry had started to develop, but the lack of raw material in the form of coal and
iron ore limited its progress.
• The Industrial Revolution in France occurred later than in Britain and other European countries, starting in the late 18th
century and gaining momentum in the 19th century. France's industrialization progressed through textile mechanisation,
and heavy industry growth like iron, steel and coal, culminating in rapid industrialisation under the Second Empire.
Factors Responsible for the Industrialisation of France
• Political and Social Reforms: The French Revolution abolished feudalism and established a more unified market,
facilitating industrialization in the long run, despite initial disruptions.
• Resource Availability: Access to resources like coal, iron ore, and water power supported heavy industries, while textile
centres like Lyon and Lille benefited from raw materials like wool and flax.
• Infrastructure Development: Construction of roads, canals, and railroads, improved transportation and movement of goods
and resources.
• Technological Innovations: French inventors contributed innovations like the Jacquard loom, and Leblanc process,
driving productivity in textiles, chemicals, and metallurgy.
• Government Policies: The Second Empire under Napoleon III invested in infrastructure, provided financial support, and
implemented protectionist tariffs to nurture domestic industries.
• Entrepreneurship and Investment: Influential industrialists like the Schneiders and Peugeots, along with private
investment and joint-stock companies, propelled industrial growth
• GERMANY: It was a latecomer as it had to wait till its unification in 1870. But after this, it made rapid progress and became the
main rival of Britain.
Factors Responsible for the Industrialisation of Germany
• Availability of Natural Resources: The industrial boom was fueled by abundant natural resources, with coal deposits in the
Ruhr Valley and iron ore in Lorraine and Silesia, propelling the steel and coal mining industries.
• Transportation Infrastructure: The construction of an extensive railway network was pivotal, streamlining the transport of
raw materials and finished goods, and bolstering trade and commerce.
• Contribution of Bismarck: Bismarck's policies facilitated economic unification, promoted heavy industries through
subsidies and tariffs, encouraged infrastructure development, and supported technological advancements, providing a
conducive environment for rapid industrialization.
• Threat from France: The threat of military conflict with France motivated Germany to strengthen its industrial base,
particularly in the production of steel, coal, and armaments, to enhance its military capabilities and assert its power.
• Adoption of New Technologies: Germany's industrial progress was fueled by adopting new technologies like the Bessemer
steel process and chemical/electrical engineering advancements.
• Entrepreneurial Spirit and Industrial Leadership: The emergence of influential industrialists and business leaders, such
as those behind Krupp and Siemens, and a culture of risk-taking and innovation, were key drivers of industrial growth.
• JAPAN: It was initially known only for silk, porcelain and toys. However, by the end of 19th century it became a global player in
steel, machinery, metal goods and chemicals. It was the first country to industrialize in Asia.
• The Industrial Revolution in Japan took place in the late 19th and early 20th centuries. The Meiji Restoration in
1868 marked the beginning of Japan's industrialization. The new government initiated a series of reforms, known as
the Bunmei Kaika (Civilization and Enlightenment), aimed at westernising and modernising Japan.
Factors Responsible for the Industrialisation of Japan
• Skilled Labor Force: Japan's emphasis on education resulted in a literate population, a disciplined workforce, and the
availability of skilled artisans and craftsmen.
 • Acquisition of Foreign Knowledge and Technology: Japan hired foreign experts, sent students and workers abroad for
training, and imported machinery and equipment from Western nations to acquire foreign knowledge and technology.
• Infrastructure Development: The construction of railways, roads, ports, and expansion of transportation networks
facilitated the movement of goods and resources, supporting industrial growth.
• Private Enterprise and Zaibatsu: The shift from government-led to private sector involvement, establishment of zaibatsu
(large family-owned conglomerates), and promotion of entrepreneurship and innovation drove industrialization.
• Focus on Heavy Industries: Japan's emphasis on strategic heavy industries like shipbuilding, steel, and machinery
development supported military modernization and the buildup of a robust industrial base.
• Protectionist Policies: The implementation of tariffs, trade barriers, nurturing of domestic industries, and promotion of
import substitution fostered industrial growth.
• USA:
• British policy of Mercantilism had prevented development of indigenous industry, and USA was engaged in its own
political turmoil of Territorial expansion and the Civil War after President Lincoln banned Slavery, it was only after 1870
that Industrial production got a big boost. USA then emerged as an industrial power and by the World War I, it was the
major supplier of finished goods to rest of the world.
Factors Responsible for the Industrialisation of America
• Embargo Act of 1807: It prohibited American merchant ships from leaving for foreign ports and prohibited foreign vessels
from carrying American goods out of American ports.
• The Americans were forced to start producing more of their goods because they couldn't access foreign goods.
• Natural Resources: The United States' abundant natural resources like water, timber, metals and coal-fueled manufacturing
of various goods for the market.
• Railroads: Railroad networks in the U.S. promoted the growth of industries like coal and steel and sped up
the transportation of goods to market thus encouraging mass production, mass consumption, and economic specialisation.
• Abundant Labor Supply: A significant number of foreign workers were drawn to the United States by the railway industry,
creating a plentiful labour pool for expanding businesses.
• Laissez-faire politics: Businesses were able to thrive and grow at a rapid pace due to a lack of government regulation.
Innovations and Technological Changes
• Samuel Slater, an English mill operator, helped Moses Brown establish the first water-powered textile mill in the Americas
in 1793.
o He was referred to by President Andrew Jackson as the "Father of the American Industrial Revolution."
• In 1793, Eli Whitney invented the cotton gin.
• The telegraph was invented by Samuel F.B. Morse, and the sewing machine was invented by Elias Howe.
• After the Civil War, industrialisation accelerated.
o The first transcontinental railway was finished in 1869 to transport people, raw materials, and manufacturers.
o The invention of electricity by Thomas Alva Edison (1879) and the telephone by Alexander Graham Bell
(1876) changed the whole world.
• The invention of electricity enabled the development of the electric motor, leading to electric trams and subway trains.
• The first roller coaster was patented by Edwin Prescott in 1898.
• The first aeroplane, Orville and Wilber Wright invented the first plane that was not powered by wind in 1903.
• The Ford Model T automobile was created by Henry Ford in 1908.
• RUSSIA
• It was rich in natural resources but due to lack of capital and free labor because of serfdom, the process of its
industrialization was slow. Russian industrial production got a boost when Serfdom was abolished in 1861 and it borrowed
foreign capital. But it was only after the 1917 October revolution (Bolshevik revolution) that Russia underwent true
Industrial revolution.

Impact of industrialization;
The Industrial Revolution had far-reaching and profound effects on every aspect of society, economy, and technology, shaping the
course of human history and transforming the world in various ways.

Political Impact of Industrial Revolution

o Expansion of Democracy: The industrial and professional bourgeoisie section began to fight for a share in the
government and succeeded with the passing of the historic First Reform Act in 1832. The Reform Act of 1832, also
known as the Great Reform Act or First Reform Act, was a law that changed the electoral system in England and
Wales. This gave the right to vote to the middle class.
• Emergence of Labour Unions: Workers were inspired to combine and organise themselves to fight for rights and this gave
rise to the trade union movement in Britain.
 o Their right to strike and form a union for exacting demands from the management was recognized.
• A shift in power and influence: The Industrial Revolution brought about the rise of capitalism. As a result, a small number
of industrialists came to possess vast wealth and power. At the same time, factory workers received pitiful wages, sparking
discussions about economic inequality and social justice.
o Thus, it led to the rise of classes and class politics, ultimately communism by Marx.
• Rise of nationalism: Industrialisation enabled countries leading to increased connectivity and a sense of national identity.
o Nationalism, which placed a strong emphasis on patriotism and pride in one's country, developed into a strong
political force that was frequently connected to international rivalry in terms of trade and conflict over territorial
interests.
• Growth of imperialism: As industrialised countries sought to expand their territories and secure resources for their growing
economies, it led to imperialism and the colonisation of other regions of the world.

Social Impact of Industrial Revolution

• The Industrial Revolution immensely affected the society of Europe, particularly that of Britain.
• Feudal society transformed into Industrial Society.
• The society was divided into three new groups based on economic status and interests.
• The 'grande bourgeoisie' or industrial elite comprised wealthy bankers, capitalists and industrialists.
• The educated middle class or 'professional bourgeoisie' included engineers, technicians, doctors and lawyers.
• The working class (Proletariat) consisted of labourers who migrated to urban areas for factory, mining and dock jobs.
• Means of production were controlled by factory owners. Land less, tool less workers were now dependent on employer. He
could be hired or fired at will and enjoyed no rights, job security or social benefits. Their plight is well illustrated by
Charles Dickens in his novels. Their working conditions were deplorable and they lived in filthy conditions.
Conditions of the working class:
• Child labour increased
• Working class lived in poverty
• Long working hours and low pay
• Positive Effects of the Industrial Revolution like, an increase in wealth, the production of goods, and the standard of
living.
o People had access to more affordable goods, better housing, and healthier diets.

Economic Impact of Industrial Revolution

• Emergence of Laissez Faire doctrine.
• Centre of economy shifted from rural to urban areas, connection with land ended and the self-sufficiency of village was
broken.
• Growth of trade, commerce, means of transportation, communication, Banking etc took place.
• There was a significant increase in output, which resulted in lower product costs.
• Rise of Capitalism: A new source of wealth rose from the ownership of factories and machinery. This new group of people
became known as capitalists.
• Banking system: They also organised the banking system to distribute capital from surplus income areas to those areas
where it was needed.
o In the early 1700s, the first private banks were opened by goldsmiths, merchants, and manufacturers.
• Trade: The discovery of trade routes encouraged competition amongst colonial and imperialist powers for expanding their
empires to fulfil the need for raw materials, new markets, and cheap labour.

International Impact
• Race for new colonies started. This led to the policy of colonialism and imperialism.
• Brought countries and people together. World became interconnected and growth of international consciousness took
place. The events in one part in the world affected another.

Religion
• Broke the monopoly of religion. It was relegated to private affair.
• Some country like France totally prohibited any show of religion in public affairs.

Health
• Environmental pollution was also on an increase. This caused many health problems for the workers. The industrial lobby
for long ensured that the Parliamentarians did nothing for the welfare of the workers, which led to development of resentment
and many worker movements.

Merits of industrial revolution

• Urbanization : it created big cities and urban centres. People migrated to urban areas for work and wages.
 • Machinery ; power machinary increased production of goods.
• Intellectual movement ; schools, colleges, newspapers and the radio had been dependent on the capitalistic system for the
rapid movement. Many intellectuals like KARL MARX emerged as a result of industrial revolution.
• Employment boost ; new industries provided employment to many men and women.

Demerits of industrial revolution;

• Capitalism : money get concentrated into few hands.
• New social problems : cities become overcrowded and which leads to new challenges like accommodation, sanitation, and
health. Overcrowd led the sickness and crime. Women and children were employed for cheap labour, they worked for
12-14 hours a day.
• Class division : Industrial revoluion divided the society into two groups ; one is BOURGEOISIE ( rich middle class) and
other is PROLETARIAT ( wage earning class )
• Growth of colonialism and imperialism : because colonies were useful to obtain raw materials and to sell finished products.

Major industrial reforms undertaken;

1. Formation of trade union was allowed.
2. Factory Act was passed in 1802.
3. Restriction on number of hours for kids to 12. Later kids below 9 years of age could not be employed.
4. Chartist Movement (1836-48) was launched for the demand of right to vote for industrial workers. Earlier they were
denied.
5. Socialist consciousness developed. Reordering of social system.
6. State’s role in regulating the economy also came to be realized.

Rise of socialism ;

• The greatest challenge to laissez faire or free market doctrine came from socialism which grew in the beginning as a reaction
against evils of capitalism. The idea appealed to workers. A complete re-ordering of society was felt necessary. While
recognizing the importance of machines and making them even better it also aimed at solving the problems created by
capitalism by building new social order.

Reasons for Growth of Socialism

1. Vast majority of workers had no right. Their conditions of work were miserable and were fired and hired on according to
the needs of the capitalists. They had no job security. There were laws against workers combining themselves.
2. Belief that capitalism is evil and the means of production should be owned by the society as a whole and not by a few
individuals.
• Workers began to organize themselves into trade unions to protect the common rights.
• Appearance of Marxian socialism (Marxism).

SECOND INDUSTRIAL REVOLUTION ;

• Changes in industry were so great that the period after 1860 is called the second IR.
• Great new scientific industries were founded e.g. steel, chemicals and petroleum.
• These new industries were larger and more productive than any industries before.
• Germany and USA became the leaders , and by the end of 19 th century they were challenging the Great Britain in the world
market for industrial goods.
• Breakthrough in the fields of electricity and magnetism provided the basis for large electrical industry.
• In 1882, Thomas A. Edison introduced a system of electric lightening in new York city, which spread across USA and soon
adopted in Europe.
• The electric telegraph was invented by SAMUEL MORSE in 1844 and was used to convey commercial information (stock
exchanges ).
• Alexander Graham Bell patented his telephone in 1876, and network of telephone lines were built quickly across the
United States.
IMPACT OF INDUSTRIAL REVOLUTION ON INDIA
• Economic Impact: The rise of British economic power and colonisation of India led to the destruction of traditional
Indian industries like textiles and handicrafts.
o There was an influx of British manufactured goods, undermining local production.
o India was transformed into a supplier of raw materials and a consumer of British goods.
• Social Impact: The Industrial Revolution disrupted traditional social structures and occupations in India.
 o It led to the rise of new social classes, such as industrialists and workers, and accelerated urbanisation and the
growth of cities.
o Western education and ideas were introduced, influencing Indian society.
• Political Impact: The strengthening of British colonial rule and exploitation of resources in India was a direct consequence
of the Industrial Revolution.
o It also sparked the rise of Indian nationalist movements and demands for self-governance.
o Exposure to Western political ideologies like liberalism and socialism influenced Indian political thought.
• Infrastructural Impact: The development of railways, roads, and communication networks facilitated the movement of
goods and people in India.
o This infrastructure laid the groundwork for India's future industrialisation, though it primarily served British colonial
interests initially.