Introduction Capitalism has shaped the modern world, influencing how societies function, economies grow, and individuals pursue wealth. For UPSC aspirants , understanding capitalism is crucial because it directly links to GS1 (History of Industrial Revolution) , GS2 (Economic policies) , and GS3 (Indian Economy) . Questions on capitalism and its effects often appear in UPSC Prelims and Mains . Causes of Capitalism Industrial Revolution The 18th–19th century industrial revolution in Europe created conditions for large-scale industries, trade, and private investments. Technological innovation made private ownership profitable. PYQ relevance : UPSC often asks about the Industrial Revolution's impact on society and economy. Decline of Feudalism Collapse of feudal structures in Europe gave rise to wage labor and private enterprise. Farmers and artisans shifted towards production for markets instead of subsistence. Colonial Expansion Colonies provided raw materials and markets. European ...