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Factors Responsible For Location Of Industries In India

  1. Availability of raw materials such as minerals, forest products and agricultural products contributes to the establishment of industrial units. The iron and steel industry in India is localised in the states of Jharkhand, West Bengal, Chattisgarh and Orissa due to the availability of iron ore, coal, limestone, manganese, etc., in the Chotanagpur belt. Sugar mills are located near the sugarcane fields.
  2. Availability of power to operate the industrial machineries is a deciding factor in the location of industrial units. Location of industries occurs close to thermal power and hydel power stations.
  3. A large amount of water is required in the industrial units for cooling the machines as well as for various purposes. Industries are ideally located near sources of water.
  4. Suitable climate with moderate conditions of temperature and rainfall are favourable for industrial location.
  5. Industrial development is largely dependant on the availability of cheap skilled and unskilled labour.
  6. A large population in the country helps as the market for industrial products. Proximity to market, especially for perishable goods, is essential to prevent wastage.
  7. Industrial development is closely related to development of transport infrastructure. Raw materials are brought to the industries and the finished products are sent to the markets or ports. A well-knit railway network is necessary in areas of heavy industries. Those industries which are dependant on imported raw materials are ideally located near sea ports.
  8. Industries are capital-intensive, and a huge capital outlay is necessary for manufacturing industries. The cotton-textile industry in the Mumbai–Ahmadabad region had the advantage of capital investments by the Parsee and Gujarati entrepreneurs.
  9. A favourable set of government policies aid industrial scenario. The political stability in a state, land acquisition laws and political will of the leaders to industrialise the state play a major role in industrial growth.

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