Factors Affecting Location of Industries
Factors Affecting Location of Industries
Factors Affecting Location of Industries
LOCATION OF INDUSTRIES
By Jonas, Sarogar, Christian and Jethro
Raw materials are the inputs to a factory system. The factory
1. Availability of raw materials processes these raw materials into the finished product which
is then sold to market. Factories usually locate close to the
source of their raw materials. This is because the cost of the
raw material includes the cost of transporting it to the factory.
By locating close to the raw material, a factory can reduce the
cost of manufacturing its products. This is especially the case
for heavy industries which use bulky (takes up a lot of space),
expensive-to-transport raw materials. If the finished product
is bulkier than the raw materials, a factory will locate close to
its market to reduce the transport cost of the finished product.
For example, iron and steel industries are located near the
iron-ore mining areas.
2. Climate and Topography
Ex:- The textile industry of Mumbai gets its power from Tata
Hydel Scheme in the Western Ghats.
Availability of capital
Money is the most important prerequisite for establishing
industries. Enough money is generated either by individual
himself or by acquiring loan from the bank.