The five factors affecting the location of industries in India are described below:
• Market: Markets provide the main outlets for selling the products produced by different industries. Thus, where the market is located, acts as a significant factor towards determining the location of the industries. For example, cotton textile industries are located near large market centers like Surat or Mumbai, where there is a large demand for cotton-made products. Similarly, petroleum refineries are seen to be located near the markets as the transport of crude oil is easier and several products derived from them are used as raw material in other industries. Koyali, Mathura and Barauni refineries are examples of such refineries of India.
• Transport: Transport plays a vital role too, in the location of industries. Initially after India got independence, all the major industries were set up in cities like Kolkata, Mumbai because these cities had adequate transportation facilities by roadways, railways and waterways. Later, industries were set up in other remote areas only when they were connected by roadways and railways. It is seen that all the major industries of India are located along the trunk rail routes.
• Power: Power is an important factor for the location of heavy industries in India because no heavy industry can function without a good, uninterrupted power supply. Without a good, uninterrupted power supply, no production unit can run and thus no output production would take place. Certain industries like aluminium are located near the power source because they require huge quantum of electricity regularly to function.
• Raw materials: Industries which use weight-losing raw materials are located near the sources of raw material. For example, sugar industry is located near the sugarcane producing areas. This happens mainly because raw material can be easily transported to the industries before they perish out. Also, being located near the raw material source reduces the cost of transporting raw materials from the source to the industries.
• Labour supply: Cheap and abundant supply of labour helps in smooth production process and so the industries are located in areas which have abundant supply of cheap labour.
Thus all of these factors jointly determine the location of an industry in a particular region.
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