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Uncategories Factors affecting the location of Industries| Industry | Geography of India

Factors affecting the location of Industries| Industry | Geography of India

10:00

Industries are not equally distributed in all the space, it has attracted to a particular location due to locational advantages.

Industries work as a system, it has input, process, and output components. The following factors affect the location of Industries:

  • The proximity of access to raw materials
  • Adequate and cheap land availability
  • access to adequate water
  • access to cheap labor
  • cheap energy availability
  • availability of sufficient capital
  • Access to transport and communication facilities
  • proximity to market
  • availability of government incentives
  • aggregation economy
  • historical factor


It is not possible to get all the favorable factors in one place and hence industries are selected at the most suitable location where the cost of manufacturing of that industry is minimum and profit is maximum.


The proximity of access to raw materials:

  • Some large industries such as iron and steel industries lose weight during the process, meaning they make finished goods (iron) of much less weight than the raw materials they use. These industries are set up at a place where raw material is cheaply available nearby.
  • Other, heavy and weight-loosing industries such as sugar and cement industries are set up very close to the sources of raw materials.
  • Some industries whose raw materials perish quickly, these industries are set up near the sources of raw materials. such as agro-processing and dairy products industries.


Access to cheap labor supply:

  • Some industries require skilled labor, unskilled labor, or both.
  • The cheap availability of the labor force attracts industry. For example, Many textile industries are set up by European in Bangladesh and Vietnam due to the availability of cheap labor sources.

Access to Source of energy:

  • Industry cannot run without energy. There is a shortage of industries in rural India because the supply of energy in rural India is not sufficient.
  • Some industries like the aluminum industry require a lot of energy for processing. Such industries are attracted to those areas where there is a cheap source of energy. For example, the Aditya Birla Aluminum Plant of Renukoot was set up near Rihand Dam due to the availability of cheap energy.

Access to transportation and communication facilities:

  • As we know, market and raw materials are not available in one place; Therefore the transport network connects raw material sources, industries, and markets.
  • Quick and efficient transport facilities are needed to run the industries. Therefore it is better to set up industries near transport and communication lines.


Access to the market:

  • The market does not mean the city, it means people who have more purchasing power and can buy these products.
  • Low-income people living in sparsely populated areas or African countries do not provide a good market for industries.
  • The developed region of Europe, North America, Japan, and Australia is a major global markets because of the high purchasing power of the people living here.
  • Densely populated South Asia, Southeast Asia, and China also provide a large market.

Government Policy:

  • Government policies such as low taxes, tax holidays, and a subsidy for transportation, land, and power also affect the industry location.
  • Government adopts a backward and regional development strategy for overall development. They promote industries in backward areas. 

Access to Agglomeration economics;

  • Many industries benefit from the proximity of the leading industry. For example, where there is an iron and steel industry, other small industries such as the rebar-making industry, and iron lattice industry are established near it.
  • Industry and urbanization go hand in hand. Therefore, many industries prefer to be set up in urban areas.
  • The city provides markets and services to industries such as banking, insurance, transportation, labor, and consultancy.
Try to solve the following questions:
  • Discuss the factors responsible for the location of industries. ( 65th BPSC geography)
  • Analyze the factors responsible for the location of industries. ( 60-62nd BPSC geography)
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