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Industrial Location

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Industrial locations are not simple but have a complex structure of operation. The industrial locations depend upon the availability of raw materials, labor, market, and so forth. It is very rarely possible to find these factors all in one place; because of this manufacturing activity is mostly located at the most appropriate place with most of the factors available at a lower cost.

Industiral Location

Industrial Location

Industrial Location

Industrial location is a balance between capital, material and labor, and markets. The goal is to optimize the cost and go get the work done at the lowest cost. At times, pushing down the categories may lead to an increase in any other category. This is also possible through the substitution of any of the categories.

The decision on industrial location depends on several factors:

  • The nature and attributes of the modern action that the firm performs, for instance, unrefined substance extraction or yield development, the assembling of the middle of the road or eventual outcomes, and the arrangement of assistance.
  • The overall expenses of creation in various areas are adjusted against the expense of actual dispersion to target markets, and the significance of closeness to clients as a premise.

Modern areas are complicated. The actual elements that are impacted by the accessibility of crude material, environment, power and market, and so forth. The human data sources that control the modern area are labor, market, government strategies, capital, and transport offices.  It is seldom conceivable to find all these factors accessible in one spot. Consequently, fabricating movement will in general find the most suitable spot where all the elements of the modern area are by the same token accessible or can be set up at a lower cost.

Industrial Location and Urbanization

After a modern movement begins, urbanization follows. Of the time, businesses are situated in or close to urban areas. Urban areas give markets and offer types of assistance like banking, protection, transport, work, experts furthermore, monetary guidance, and so forth to the business. Numerous enterprises will generally meet up to utilize the benefits presented by the metropolitan focuses known as agglomeration economies. Progressively, a huge modern agglomeration happens.

In the pre-Independence time frame, most fabricating units were situated in places according to the perspective of abroad exchange like Mumbai, Kolkata, Chennai, and so forth. Thus, there arose specific pockets of mechanically evolved metropolitan communities encircled by a tremendous horticultural rustic. The way to choice of the production line area is the most minimal expense. Government approaches and specific work additionally impact the area of industry.

Factors Influencing Location of Industries

Many geographical and non-geographical factors impact the industrial location are:

Raw Materials

The importance of raw materials in manufacturing industries is fundamental. Modern Industries are very complex with require a wide range of raw materials, which is very important for their growth. The finished product of any industry can also be a raw material for another. Industries that require heavy raw materials at the primary stages of production are located near the supply of raw materials.


The regular supply of power is very important for the localization of industries. The three most important sources of power include coal, mineral oil, and hydroelectricity. Most industries tend to focus on the source of power. Most industries are established with economic advantages in obtaining power as well as raw materials.


Two of the most important reasons why labor is important to include that workers are often required in large quantities and secondly people with skills and expertise are often needed. Light consumer goods and also agro-based industries require lots of labor supply.


Transport through land or even water is required for assembling as well as the marketing of the finished products. Development of railways and also ports around important centers like Kolkata, Mumbai, etc. added to the industrial location and importance.


The entire process of manufacturing is meaningless if finished goods do not reach the market. Proximity is important for the quick disposal of manufacturing goods and also the reduction of transport costs and allows consumers to get things at a cheaper rate.


Modern industries are mostly capital-intensive and also require a huge level of investment and capitalists are mostly available in urban areas.


The land is a very important factor in determining the location of India. The land is the base where all industrial activities take place and are very vital in determining the location of India.

FAQs on Industrial Location

Q1: What is meant by Industrial Location?


Industrial location refers to the strategic placements of various economic activities about specific factors like land, labor, capital, etc.

Q2: What are the factors of Industrial location?


The factors on which the location of industries depends upon include the availability of raw materials, land, water, power, transport, market, and labor.

Q3: What is India’s industrial location?


The 8 major industrial locations in India include Mumbai-Pune, Bangalore- Tamil Nadu, Visakhapatnam- Guntur belt, Hugli region, Ahmedabad-Baroda region, Chotanagpur industrial belt, Gurgaon- Delhi Meerut region and Kollam-Thiruvananthapuram.

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Last Updated : 09 Apr, 2023
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