Question

Explain any five factors affecting the location of an industry

OR

Describe any three factors that control industrial location

Answer 1

The following factors affect the location of an industry: 

• Availability of raw materials: Close proximity to raw material, regular supply at cheap cost are of utmost significance, e.g., concentration of heavy industries in Chattisgarh. 
• Labour: Modern industry requires both skilled and unskilled labour at low cost. It also determines the location of industry, e.g., cotton textile industry in Maharashtra. 
• Capital: Industries are capital intensive. Banks and other financial institutions, insurance etc. play an important role in setting up production units. 
• Power: All production units depend on one or other sources of power like coal, oil, gas etc. Regular and cheap supply of power is required to keep industries operational, e.g., iron and steel industries near Raniganj and Jharia coal fields. 
• Market: Goods manufactured need to be sold in the market to maintain the demand and supply.