FACTORS INFLUENCING

LOCATION OF
INDUSTRIES
 PUNE DISTRICT EDUCATION
ASSOCIATION’S
PROF. RAMKRISHNA MORE ARTS,
COMMERCE
& SCIENCE COLLEGE , AKURDI 411035
 Name :- Loya Vaishnavi Gokuldas
 Standard :- M.com Part 1 Sem 2

 Year :- 2021-2022

 Division :- C

 Roll No. :- 331100

 Subject :-Industrial Economics

 PPT Name :- Location of industries

 Subject Teacher :- Prof. Vikas Gawali

INDRODUCTION
 The term industry does not only refer to manufacture but all
forms of goods and services produced.
 An industry is the production of goods or related services
within an economy
 The location of the industrial estate is a vital thing to consider,
irrespective of the size of your business.
 The ideal location is the one which will help in minimizing
the production and distribution cost.
MEANING
 The term industry does not only refer to manufacture but
all forms of goods and services produced.
 An industry is the production of goods or related
services within an economy.
 In fact, it is an economic activity concerned with the
processing of raw materials and manufacture of goods in
factories and the services, which surround the use of
these goods.
 . Location of industry is the geographical spread of
economic activity within an economy. H
FACTORS INFLUENCING THE LOCATION
OF INDUSTRIES
 Many important geographical factors involved in the location
of individual industries are of relative significance, e.g.,
availability of raw materials, power resources, water, Labour,
markets and the transport facilities.
 But besides such purely geographical factors influencing
industrial location, there are factors of historical, human,
political and economic nature which are now tending to
surpass the force of geographical advantages.
 Consequently, the factors influencing the location of industry
can be divided into two broad categories i.e.
 (I) Geographical factors, and

 (II) Non-geographical factors.

GEOGRAPHICAL FACTORS
 Raw material:
Availability of natural resource that can be used as raw material.
 Technology:

To turn the resource into an asset with value.

 Power:

To utilize the technology.

 Labour:

Human resource in the area who can function as labor to run the
processes.
 Transport :

Availability of easy transportation always influences the location

of the industry.
 Marketing feasibility.
The finished goods should reach the market at the end of the
process of manufacturing. Thus nearness to the market is an
add-on quality in t
 Climate.

The climate of the area selected for the industry is important,

very harsh climate are not suitable for the successful industrial
growth.
 Water Resources

Availability of water is another factor that influences the

industrial location. Many industries are established near rivers,
canals, and lakes, because of this reason he process of selecting
a location for industry.
NON-GEOGRAPHICAL FACTORS
 Capital investment.
Capital or huge investment is needed for the
establishment of industries.
 Government policies/regulations.

 Government policies are another factor that influences

industrial location. The government sets certain
restriction in the allocation of land for industries in order
to reduce regional disparities, to control excessive
pollution and to avoid the excessive clustering of
industries in big cities.
 Efficient Organisation:
Efficient and enterprising organisation and management is
essential for running modem industry successfully.
 Banking Facilities:

Establishment of industries involves daily exchange of corers

of rupees which is possible through banking facilities only.
 Insurance:

There is a constant fear of damage to machine and man in

industries for which insurance facilities are badly needed.
CONCLUSION
 Location of industry is the geographical spread of
economic activity within an economy.
 A multitude of factors influence the location decisions
of firms and industries like proximity to raw materials,
water, Labour, market, power etc.
 It should be noted that business owners want to
maximize their advantages over competitors so in
locating an industry they want to maximize their profit
and they take into account variable cost such as energy
supply, transport cost, Labour cost etc.