GDP per capita was broadly stable before the Industrial Revolution and the emergence of the modern capitalist economy, while the Industrial Revolution began an era of per-capita economic growth in capitalist economies. Some economists have said the most important effect of the Industrial Revolution was that the standard of living for the general population in the western world began to increase consistently for the first time in history, although others have said that it did not begin to meaningfully improve until the late 19th and 20th centuries. In particular, average income and population began to exhibit unprecedented sustained growth. Comparable only to humanity's adoption of agriculture with respect to material advancement, the Industrial Revolution influenced in some way almost every aspect of daily life. The Industrial Revolution marked a major turning point in history. The development of trade and the rise of business were among the major causes of the Industrial Revolution. Britain had major military and political hegemony on the Indian subcontinent particularly with the proto-industrialised Mughal Bengal, through the activities of the East India Company. By the mid-18th century, Britain was the world's leading commercial nation, controlling a global trading empire with colonies in North America and the Caribbean. The Industrial Revolution began in Great Britain, and many of the technological and architectural innovations were of British origin. The textile industry was also the first to use modern production methods.

Textiles were the dominant industry of the Industrial Revolution in terms of employment, value of output and capital invested. Output greatly increased, and a result was an unprecedented rise in population and in the rate of population growth. This transition included going from hand production methods to machines, new chemical manufacturing and iron production processes, the increasing use of steam power and water power, the development of machine tools and the rise of the mechanized factory system. The Industrial Revolution was the transition to new manufacturing processes in Great Britain, continental Europe, and the United States, in the period from about 1760 to sometime between 18.

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