(i) Physical Factors:
(a) Availability of raw materials-Ideal location should be near the sources of raw materials.
(b) Power resources-Power resources like coal and electricity must be available for the industry.
(c) Water and favourable climate.
(ii) Human Factors:
(a) Cheap and efficient labour,
(b) Capital and bank facilities,
(c) Good market,
(d) Transport facility.
