Nearness to consumer Market: population and income level of people are deciding factors of the market. India is the big market for industries, world industries are attracted to India because of the big market.
Cheap labor & skill labor source: industries are attracted to cheap labor areas. At present, Vietnam and Bangladesh are examples of attractive locations.
Labour law
Availability of raw material source: Some Industries are attracted to the raw material region to save transport costs. Industries in Bokaro, Rourkela, Bhilai in India are examples of favorable industrial locations in the raw material region.
Availability of cheap means of transport: Industries along the coastal area and riverside are attracted to save transport costs.
Agglomeration area:
In the agglomeration area cost of production is lower because of the following favorable conditions:
Low transport cost
Favorable government policy
Skill labor supply
Infrastructure facilities
For example, silicon valley in the USA.
Availability of water: for industries & for colonies.
Capital: huge capital is needed for establishing any industry, having a capitalist government in the country is an attractive destination for the industries.
Cheap energy availability
Favorable climate: some industries such as sugar, and textile industries are attracted in a humid climate region
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