Question

Explain any five factors affecting the location of industries in India.

Answer 1

Industrial locations are influenced by the availability of raw material, labour, capital, power and market, etc. Hence, manufacturing activity tends to locate at the most appropriate place where all the factors of industrial location are either available or can be arranged at a lower cost.

Each factor has been discussed below:

• Availability of raw material - Among the factors influencing the location of an industry, close proximity to raw material and availability of regular supply of cheap raw material are of utmost significance. For example the iron and steel industry in Jamshedpur, which is located near iron ore mines.
• Availability of cheap labour - Ready supply of labour is essential for an industry to function. There is a need for both skilled and unskilled labours. Usually, areas of high population supply cheap labour, as there is a demand for employment there.
• Availability of power and other infrastructure - For an industry to function properly, there is a need for uninterrupted power supply. This is the main reason why the Chota Nagpur region of our country is an industrial hub. Both thermal and hydel energy are available there, which provides sufficient power for the industries.
• Proximity to markets - A ready market is essential where the produced goods from the industry can be sold. A market near the industry will reduce its transportation cost.
• Availability of adequate and swift means of transportation - A swift means of transportation is essential to carry the raw materials to the industry and also to carry the finished product to the market.