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Factors Affecting Location of Industries

Factories are located in areas where the following are available.
  • Raw material for the proposed industry
  • Land for setting-up the factory
  • Water and power needed for running the factory
  • Availability of competent labour force
  • Capital required for starting the factory
  • Transportation of raw material and goods
  • Market facilities

State governments also offer many concessions for starting factories in backward areas so that these areas many develop rapidly. They are…

  • Subsidized power
  • Lower transport cost
  • Infrastructural facilities

Industrialization leads to development and growth of towns and cities.



Industrial System or the Functioning of an Industry

To run an industry one needs…
  • Input
  • Process
  • Out put

    Input: Raw materials, labour and costs of land, transport, power and other infrastructural facilities are inputs.

    Process: Activities that convert the raw material into finished products is called the process.

    Out put: The end product and the income earned from it are known as the out put.

Now let us take the textile industry as an example to understand the meaning of the Industrial system more clearly.

Cotton Textile Industry

  • Input
    Cotton is the main raw material that is used in this industry.
    Other inputs needed are human labour, machinery, infrastructural facilities etc.
  • Process
    Process includes ginning or separating cotton from the seed, spinning, weaving, dyeing and printing.
  • Out put
    The fabric that is manufactured by the factory is the out put.

Bales of Cotton Fabric





Industrial Regions

When a number of industries are located in a region it is called an Industrial region. In an industrial region we find that the industries benefit due to their closeness.

Major industrial regions of the world are …

  • Eastern North America
  • Western and central Europe
  • Eastern Europe
  • Eastern Asia

Major industrial regions are located in the temperate areas, near sea ports and especially near coal fields. This is because sea ports provide transportation facilities and coal is needed as fuel for many industries.


Industrial Regions of India

  • Mumbai - Pune Industrial Region,
  • Bangalore - Tamil Nadu region,
  • Hugli region,
  • Ahmedabad - Baroda region,
  • Chottanagpur - Industrial region,
  • Vishakhapatnam - Gunter region,
  • Gurgaon - Delhi - Meerut region,
  • Kollam - Thiruvanathapuram Industrial region


Major Industries of India


Fertilizer Plant - India is the largest producer of nitrogenous fertiliser having 40 plants.

Coal Fields - India ranks 3rd among the coal producing countries.

Cement Plants - India is the 3rd largest cement producing country in the world.

Steel Plant - The iron and steel industry is the largest consumer of energy in the industrial sector using electricity.


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