FACTORS AFFECTING

LOCATION OF INDUSTRIES
By Jonas, Sarogar, Christian and Jethro
  Raw materials are the inputs to a factory system. The factory
1. Availability of raw materials
processes these raw materials into the finished product which
is then sold to market. Factories usually locate close to the
source of their raw materials. This is because the cost of the
raw material includes the cost of transporting it to the factory.
By locating close to the raw material, a factory can reduce the
cost of manufacturing its products. This is especially the case
for heavy industries which use bulky (takes up a lot of space),
expensive-to-transport raw materials. If the finished product
is bulkier than the raw materials, a factory will locate close to
its market to reduce the transport cost of the finished product.
For example, iron and steel industries are located near the
iron-ore mining areas.
2. Climate and Topography

 Industries are generally developed in plain areas. This is

because plain areas provide facility for development of
transport and communication. They also give scope for
infrastructure development. Moderate climate also gives
impetus to industrial development.
3. Availability of labour

There are mainly two types of labour: Skilled

and unskilled. Industries are located In areas
where the density of poplutation is high. These
areas have easy and cheap availabiltiy of
labour
Availability of infrastructure
 Industries require water, electricity, road network, rail
network, etc. Similarly, road and rail network are also very
important for development of industrial towns, like in north
India major towns have been interconnected such as Varanasi,
Kanpur, Lucknow, Hugli, Patna, etc.

 Ex:- The textile industry of Mumbai gets its power from Tata
Hydel Scheme in the Western Ghats.
Availability of capital
 Money is the most important prerequisite for establishing
industries. Enough money is generated either by individual
himself or by acquiring loan from the bank.

 Main:- Therefore it is important to have banks and banking

facilities in the area.
Availability of market
 Once the goods are manufactured, they need to be sold.
Therefore, it is important to be closer to a market. The market
should be well connected to the area of production. Some
goods need international markets, like cars.

 Fact:- India is a market for many brands of cars like Honda,

Hyundai, Maruti Suzuki, Volkswagen, etc
End