Factors Affecting Location of Industry


 
 
Concept Explanation
 

Factors Affecting Location of Industry

Factor Affecting Location of Industries: The factors affecting the location of industries are the availability of raw materials, land, water, labour, power, capital, transport and market. Industries are situated  where some or all of these factors are easily available.

Sometimes, the government provides incentives like subsidized power, lower transport cost and other infrastructure so that industries may be located in backward areas. Industrialization often leads to development and growth of towns and cities. An Industrial Activity is always followed by the Urbanisation .Sometimes industries are located in or near the cities to get the services of Banking , Insurance , Transport & financial Advisers etc .

 Major Locations Affecting factors are :- 

  • Availability of Raw Materials : Raw Material is the basic requirement of manufacturing industries. It is derived either from agriculture of mining. Hence, industries which are based on bulky and perishable raw materials are located near the source of raw material. For example: sugar mills are located  close to sugarcane fields.
  • Power Supply- location should be at such a place where the electricity can be provide easily Because before the electrification Huge web of wires has To be set Up . 
  • Communication & Transportation - Location must be chosen such that the communication can be possible & transport services can be obtained easily to bring the raw material from market & distribute the finished products to the market or end consumers . 
  • Labour Supply - Generally small scale industries are located near existing towns or cities, where there is adequate supply of both skilled and unskilled labour. In case of industries, where large number of workers are required, labour migrates to the industrial centre and can be trained.
  • Access to market - Industrial location must be approachable to the market , where the goods are to be sold in large quantity.
  • Government Policies : Usually government provides subsidies & Grants when individuals start an Industry in a backward or under - developed regions , because it shall help in a balanced regional development of the nation. State shall provide an added incentive by giving concession in taxes.
  • Sample Questions
    (More Questions for each concept available in Login)
    Question : 1

    Which of the following factors influence the industrial locations?

    Right Option : D
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    Explanation
    Question : 2

    Which is the industrial capital of Bihar?

    Right Option : C
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    Explanation
    Question : 3

    In which of the following states, Koyana multipurpose project is set up?

    Right Option : B
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    Explanation
     
     
     
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