Geographical and commercial factors affecting the location of industries are as follows
Geographical Factors Affecting the Location of Industries
- Raw Materials: Industries are mostly established at areas which are located close to the fields of raw materials. For example, many iron and steel industries are located near the iron and coal fields. Industries dealing with the manufacturing of perishable goods are located close to the source of raw materials. For example, sugarcane industries are located close to the sugarcane fields as the sucrose content of sugarcane starts drying up after 24 hours of its harvest.
- Water Supply: Industries require water while manufacturing goods. For example, water is used in textile industries for bleaching and washing purposes. Thus, many industries are located close to the sources of water.
- Energy: Energy is required for processing raw materials into manufactured goods. Thus, many industries are located close to the coal fields. Industries are also located in regions where energy power resources are readily and cheaply available.
- Transport: Transport is required for carrying raw materials to manufacturing units. It is also required for transporting finished goods to markets. Thus, many industries are located near the port cities which are also well-connected by road and rail to major towns and market cities.
- Labour: The availability of skilled and unskilled labour is an important factor which decides the location of industries. Thus, many industries are located at places where cheap labour is readily available.
- Proximity to Markets: Industries require markets to sell off their finished goods. For example, heavy industries are located in an industrial area as their products are required by other small industries.
- Climate: It plays an important role in determining the location of agro-based industries. For example, many cotton textile mills are located in Mumbai and Gujarat as it has a favourable climate which is required for storing and manufacturing cotton yarn.
Commercial Factors Affecting the Location of Industries
- Policies of the Government: The policies of the government play an important role in deciding the location of industries. The government makes rules and regulations for the supply of water and electricity. Further, it formulates policies for protecting and encouraging indigenous industries.
- Capital: Many industries are located in the big cities where most financers and investors are present. Thus, many big cities are also major industrial centres.
- Organisational Skills: Organizational skills and technical knowledge are required for running any industry. As a result, we find that many industries are located near educational and management institutes to hire skilled people.
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