SUBMITTED BY: TAHMINA HANIF

F2017214009
SUBMITTED TO: SIR MUTAHIR AWAN
COURSE:
PROJECT PLANNING AND MANAGEMENT

DEPARTMENT OF CITY AND REGIONAL PLANNING

SCHOOL OF ARCHITECTURE AND PLANNING
UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE
 Industrial Planning
The process of making arrangements or preparations to facilitate the manufacturing, producing and
processing of goods or merchandise.

Industrial Planning is a schematic and strategic process for the preparation a plan to strengthen or develop
any industrial area in a manner that it facilitates the manufacturing, producing and processing of goods
and merchandise.

Importance of industrialization:
Industrialization is the first and foremost requirement of rapid economic development of a country. The
industrialization is not only helpful in the development of industries but it also promotes agriculture,
trade, transport, foreign trade, services and social sectors of the economy. It increases employment
opportunities, national income, per capita income and living standard of the population. Therefore, an
industrial planning is required to establish healthy traditions of industrialization and to guide, regulate and
control (if required) industrial development. The industrial policy of a country is influenced by the
ideology ‘and principles of the concerned government. The industrial planning helps the country making
it self-sufficient and prosperous by preparing a structure and basis of industrial development. Hence, the
industrial policy of the govt. must be well defined, clear and progressive. Moreover, it should be adhered
to and implemented earnestly.

Industrial Policy:

The industrial policy refers to such formal declaration by the government through which general policies
for industries adopted by the govt. are made public. Any industrial policy may have mainly two parts
first, the ideology of the govt. which determines the nature of industrialization, and second, the governing
rules and principles which provide a certain framework behind existing ideology. Thus, industrial policy
is a comprehensive concept which provides guidance and out-lines of the policy for establishment and
working of industries.

Objectives of Industrial planning

The main objectives of the Industrial Planning are:

1. To maintain a sustained growth in productivity

2. To enhance gainful employment
3. To achieve optimal utilization of human resources
4. To attain international competitiveness
Factors responsible for location of Industries:
Industrial locations are complex in nature. These are influenced by the availability of many
factors. Some of them are: raw material, land, water, labor, capital, power, transport, and market.
For ease of convenience, we can classify the location factors into two: geographical factors and
non-geographical factors.
Geographical Factors

1. Raw material: Availability of natural resource that can be used as raw material.
2. Technology: To turn the resource into an asset with value.
3. Power: To utilize the technology.
4. Labour: Human resource in the area who can function as labor to run the processes.
5. Transport: Road/rail connectivity.
6. Storage and warehousing.
7. Marketing feasibility.
8. Characteristics of land and soil.
9. Climate.
10. Precipitation and water resources.
11. Vulnerability to natural resources.

Non-geographical Factors:

1. Capital investment.
2. Availability of loans.
3. Investment climate.
4. Government policies/regulations.
5. Influence of pressure groups

Types of Industries:

Industries can be classified on different basis. Classification of industries on the basis of five
criteria has been given in following figure.
Importance of Industrial Policy:

The need, objectives and importance of an industrial policy can be explained through following points

 Deployment of Natural Resources

 To Augment Industrial Production
 Modernization
 Balanced Industrial Development
 Balanced Regional Development
 Coordination between Basic and Consumer Industries
 Coordination between Small Scale and Large Scale Industries
 Area Determination
 Cordial Industrial Relations
 Proper Utilization of Foreign Assistance/investment