Question

Give an account of the factors that determine the establishment of an industry.

Answer 1

Factors that determine the establishment of an Industry are:

1. Availability of Raw Material — All industries that require heavy and bulky raw material are generally set up near the sources of raw materials in order to save heavy transportation cost. For example, iron and steel plants in India and other countries have been set up near iron ore mines and coalfields as both iron ore and coal are heavy and difficult to transport.
2. Availability of Power — For any industry power is a very critical factor. Cheap, abundant and uninterrupted power supply is an essential need for any modem industry using large machines.
3. Availability of Transport —An important factor for setting up industries is the availability of efficient means of transportation as movement of raw material to the factory and finished goods to the market depend on it.
4. Availability of Labour — Though labour-skilled and unskilled-can be transported from different regions, it is advantageous to have an assured labour supply locally for setting up an industry.
5. Market — The ultimate aim of any industry is to sell its product easily, i.e., to find a market for its product without much difficulty. Industries of certain types are set up in specific regions where their goods can easily be sold. Woollen industries will do well in areas of cold climate while industries making cotton goods will