Three factors determining the location of an industry are :
(i) Raw Material : Industries which use heavy and bulky raw materials in their primary stage in large quantities, are usually located near the supply of the raw material, to bring down the cost of production e.g., Iron and Steel industry.
(ii) Power : Regular supply of power is a prerequisite for the localization of industries. Tata Iron and Steel Company at Jamshedpur, Aluminium Plant at Korba in Chhattisgarh and Renukoot in U.P., Copper smelting plant at Khetri, Rajasthan are near the sources of power and raw material.
(iii) Transport: Transport by land or water is necessary for the assembly of raw materials and for the marketing of finished products. The location of many industries around Kolkata, Mumbai and Chennai is due to the development of railways in India, connecting the port towns with their hinterlands.
(b) (i) Industries tend to be concentrated in a few pockets because of certain favorable factors. The pockets having high concentration of industries are known as industrial clusters.
(ii) Gurgaon-Delhi – Meerut industrial region. Two reasons for its growth are :
1. It owes its development and growth to hydro-electricity from Bhakra-Nangal complex and thermal power from Harduaganj, Faridabad and Panipat.
2. It is one of the fastest-growing market-oriented industrial cluster adjoining Delhi.
