There are about 70 jute mills in India mostly located in West Bengal along the banks of the Hugli river. Factors responsible for the location in the Hugli basin are:
(i) Nearness of the jute producing areas.
(ii) Low-cost water transport, supported by a good network of railways, roadways and waterways to help the movement of raw material to the mills.
(iii) Abundant water for processing raw jute.
(iv) Cheap labour from West Bengal and adjoining states of Bihar, Orissa and Uttar Pradesh.
(v) Kolkata as an urban centre provides banking, insurance and port facilities for export of jute goods.