This document summarizes the transition from pre-industrial to industrial production in Europe and its impact in India. It describes how merchants in Europe first turned to the countryside to produce goods due to guild restrictions in towns. Rural artisans agreed to work for merchants. This led to the development of relationships between towns and countryside. Eventually, factories began to consolidate all stages of production under one roof, driven by inventions that increased efficiency. The growth of factories had mixed impacts - it provided jobs but also unemployment and poor working conditions. The rise of European industries like cotton had negative effects in India, undermining weavers and the export trade they relied upon.