Wednesday, November 4, 2009



Before an industry is located at any place, certain basic requirements have to be considered. Not all of them are required all the time for each and every industry; however, nor can the location of an industry be guided by a single factor. All these factors must be researched and analysed before an industry is established if the expectations of economic production are to be met.

Raw materials
are basic requirements for manufactur­ing industries. Weight-losing industries e.g., cement, sugar (to quintals of sugarcane is needed to produce 1 quintal of sugar) are located near the source of raw material. On the other hand, foot-loose industries are independent of raw material sources, e.g., garment and electronics indus­tries, and can be established practically anywhere.

Power resources are important for energy-intensive industries such as aluminium and polythene bags industries which are located near the energy sources.

Labour supply is another important factor particularly for the labour-intensive industry, e.g., construction indus­try. To an extent, labour can be brought. to a site from other regions.

Means of transportation and communication
playa special role in bringing raw material to the factory and finished products to the market, e.g., cheap water transport has facilitated the development and concentration of jute mills in the Hooghly region.

Market facility
also influences industries, many of which are located near large urban centres because the potential buyers are easy available.

Other factors
like financial facilities, climate, industrial
incentives and government facilities also matter. In India one could get more subsidised raw material, very low rate of interest on capital and 9!her incentives for establishing an industry in the 'Backward Regions' or in 'No Industry District' .

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