Question.
Why do Large-scale Industries choose different locations?
(Class 12 geography, Fundamentals of Human Geography, Chapter-6. Secondary Activities )
Answer.
Large-scale industries are those industries that involve in mass production of goods and have a large market for their goods, and they use bulky raw materials, enormous energy, vast capital, and advanced technology for production. large-scale industries do have a large organization and executive bureaucracy to manage.
Large-scale industries choose different locations to maximize profits and minimize input costs. The following are the factors for selecting different locations for large-scale industries:
- The proximity of raw material sources
- proximity to market
- cheap sources of electricity
- cheap source of skilled labor
- Government policy and safety of people
- proximity to the transport system
- Agglomeration of economy
Some large-scale industries such as the iron and steel industries suffer weight loss during processing. This is the reason why such industries prefer to be located near raw material sources (in the case of iron and steel industries- iron ore and coal mines) to save on the transportation cost of carrying heavy raw materials. This is the reason why India's large iron and steel industries are located in the Chotanagpur plateau which is the source of iron ore and coal. Similarly, many agro-based industries like the cotton industry and sugarcane industry are located near agricultural production areas.
Some large-scale industries like automobile and petro-refinery industries are located near the market to meet the demand of the consumers. This is the reason why many refinery industries and petrochemical industries are located near Mumbai and Delhi Industrial Areas. Many large-scale industries are located in densely populated regions of Europe, Asia and Southeast Asia, and the United States because these regions provide a large market for products; and many large industries are not located in Africa because the African region is inhabited by people with less purchasing power.
Some large-scale industries such as aluminum plants require more energy for processing, which is why it is placed near cheaper sources of electrical power. That's why Renukoot's Hindalco Aluminum Plant is located near Rihand Dam as it provides a cheap source of energy.
Some large-scale industries like chemical industries are hazardous in nature and are preferred to be set up in less populated areas.
Some large-scale industries such as automobiles and heavy machinery are set up for export, which is why it is chosen to be located near a port or near a transport system.
Other industries benefit from the proximity of the main industry and all industries benefit from the agglomeration economy. For this reason, petrochemical industries are found near the petro refinery industry.
The above factors determine the location of an industry.
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