Factors responsible for the location of industries (with special reference to India)

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[su_heading size=”21″]Types of Industries[/su_heading]

Based on the value addition and tangibility broadly we can have three types of industries – primary industries,secondary industries and tertiary industries.

  • Primary industries are usually very simple industries involving processing of raw materials to give input goods for secondary industries.
    Here value addition is usually minimal and they are
    usually material oriented.Scale of operation may be small or may be very large.Examples are: coal mining and washing, oil-refining,flour milling, Metal smelting, stone crushing, etc.
  • Secondary industries are very complex and diversified which took input from primary industries and add significant value to it in different processing stages.
    The value additions are so significant that they may have a locational preference in favour of market.Secondary industries may again divided into heavy industries, Light industries, footloose industries, etc.
  1. a) Heavy industries are identified by nature of their bulkyproduct or very high capital inputs or units which mayhave high capacity to influence Environment adversely.Examples are: heavy chemical, heavy machinery,locomotive, shipbuilding, heavy electrical, etc.
  2. b) Light industries are less capital intensive and moreinclined to consumer products.
    Products are usually lighter in weight, require lesspower, less polluting and can be established in small areas.
  3. c) Footloose industries are those industries which nearly remain indifferent with locational aspects of plant.Their products are having very high value addition and smaller in size and so transportation cost is only a small fraction of total cost.These industries usually requires a very small production space, are usually less polluting and butrequires highly skilled workers.Examples are: watch, camera, diamond cutting,precision electronics, etc.

Tertiary industries are not related to production process.They are basically trade and Services providing industries.The scale of operation is so large that it is regarded as an Industry.Examples are: Banking industry, insurance industry, consultancy industry, etc.

[su_heading size=”21″]Factors of industrial location[/su_heading]

The factors affecting the location of industries are :-

  • the availability of raw material,
  • the availability of land,
  • the availability of water,
  • the availability of labour,
  • the availability and consistency of power supply,
  • the availability of capital,
  • the availability of transport Network and market.
  •  Sometimes, the government provides incentives like subsidised power, lower transport cost and other Infrastructure-2/”>INFRASTRUCTURE so that industries may be located in backward areas.

[su_heading size=”21″]Distribution and changing pattern of iron and steel industry[/su_heading]

Although iron and steel manufacturing activity in India is very old, modern iron and steel industry started with the establishment of ‘Bengal Iron and Steel Works’ at Kulti in West Bengal in 1817. Tata Iron and Steel company was established at Jamshedpur in 1907. This was followed by ‘Indian Iron and Steel plant’ at Burnpur in 1919. All the three Plants were established in the private sector. The first public sector iron and steel plant, which is now known as ‘Visvesvarayya Iron and Steel works’, was established at Bhadrawati in 1923.

After independence a great focus was given for self dependence and investments were made in heavy industries. Three new integrated steel plants were established at Rourkela, Bhilai and Durgapur. Bokaro steel plant was established under public sector in 1964. Bokaro and Bhilai plants were set up with the collaboration of the former Soviet Union. Durgapur steel plant was set up in Collaboration with United Kingdom while Rourkela plant was established with the help of Germany.

The change in the spatial pattern of this industry is linked to the change in patterns of consumption, production and exchange of goods and services. This is dependent on the spatial organization and location of economic, transportation and Communication-systems/”>Communication systems that produce and facilitate the trade of the concerned commodities.

[su_heading size=”21″]Distribution and changing pattern of Cotton textile industry[/su_heading]

The industrial development in India began with the establishment of first successful modern cotton textile mill at Mumbai in 1854.Traditional cotton textile industry could not face the competition from the new textile mills of the West, which produced cheap and good quality fabrics through mechanized industrial units. Majority of cotton textile mills are still located in the cotton growing areas of the great plains and peninsular India.

The Muslins of Dhaka, Chintzes of Masulipatnam, Calicos of Calicut and Gold-wrought cotton of Burhanpur, Surat and Vadodara were known worldwide for their quality and design. But the production of hand woven cotton textile was expensive and time consuming. Hence, traditional cotton textile industry could not face the competition from the new textile mills of the West, which produced cheap and good quality fabrics through mechanized industrial units.

[su_heading size=”21″]Distribution and changing pattern of Sugar industry[/su_heading]

India is the second largest producer of sugar in the world after Brazil and is also the largest consumer. Today Indian sugar industry’s annual output is worth approximately Rs.80,000 crores.Most of the sugar mills are concentrated in six states, namely Uttar Pradesh, Bihar, Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh.

Over the period, sugarcane industry is gradually shifting from north Indian states to states in Peninsular India. Some of the important reasons are as follows:

1) The production of sugarcane per hectare is higher is Peninsular India. In fact, sugarcane crop grows well in the tropical Climate of south India.

2) The sucrose contents is higher in the tropical variety of sugarcane grown in the south.

3) The crushing season in south India is longer than in north India.

4) In south India most of the mills have modern machinery.

5) Most of the mills in Peninsular India are in cooperative sector, where profit maximization is not the sole objective

[su_heading size=”21″]Distribution and changing pattern of Petro- chemicals industry[/su_heading]

Petro-chemicals are derived from petroleum or natural gas.Products such as Toothbrushes, toothpaste, combs, hairpins, soap cases, plastic mugs, garments, radiocaes, ball point pens, detergents, electric switches, lipstick, insecticides, bags, bed covers, and foam are some of the goods made from petro-chemicals. The share of offshore crude oil production was about 50.2%. The remaining crude oil production was from 6 States viz., Andhra Pradesh (0.7%), Arunachal Pradesh (0.2%), Assam (12.1%), Gujarat (12.5%), Rajasthan (23.7%) and Tamil Nadu (0.6%).

Besides Vadodara, Gandhar, and Hazira in Gujarat and Nagathone in Maharashtra are other important centres of petro-chemical industry. India is self sufficient in the production of petrochemicals.

[su_heading size=”21″]Weber’s theory of industrial location-its relevance in the modern world.[/su_heading]

Weber’s main point was that the cost of transport (another theory on this) determined the location of industry. Therefore, he uses Von Thunen’s idea (that the cost of transport determines crop selection) and applies it to industry. Similar to Von Thunen, the weight of the raw materials and the weight of the end product (this difference is known as the material index) will determine the site of production depending upon how much the industry is willing to pay to get its product to the market (connecting to Christaller’s ideas of market area). Weber’s theory rest primarily on four such sites, what he calls industrial orientations

  • Material orientation
  • Labor orientation
  • Transport orientation
  •  Market orientation

He analyzed the factors that determine the location of industry and classified these factors into two divisions. These are:

(i) Primary causes of regional distribution of industry (regional factors)

(ii) Secondary causes (agglomerative and deglomerative factors) that are responsible for redistribution of industry.

The three locational factors explained by weber in his theory of industrial location are:-

  • Transport cost
  • labour cost
  • agglomeration economies

Weber uses the location triangle within which the optimal is located based on the three locational factors.

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The location of industries is a complex issue that is influenced by a variety of factors. Some of the most important factors include the availability of raw materials, the availability of a large market, the availability of reliable and affordable power, the availability of a skilled and low-cost labor force, the availability of adequate infrastructure, government policies, competition, and environmental factors.

The availability of raw materials is one of the most important factors in the location of industries. Industries tend to locate near the sources of raw materials in order to reduce transportation costs. For example, the iron and steel industry is located in the mineral-rich states of Jharkhand, Odisha, and Chhattisgarh.

The availability of a large market is another important factor in the location of industries. Industries tend to locate near their markets in order to reduce transportation costs. For example, the automobile industry is located in the states of Maharashtra, Gujarat, and Tamil Nadu, which have large populations and high levels of economic activity.

The availability of reliable and affordable power is essential for most industries. Industries tend to locate near sources of power in order to reduce their energy costs. For example, the power-intensive aluminum industry is located in the states of Gujarat and Maharashtra, which have large hydroelectric power plants.

The availability of a skilled and low-cost labor force is another important factor in the location of industries. Industries tend to locate in areas with a large pool of unemployed or underemployed workers. For example, the textile industry is located in the states of Gujarat, Maharashtra, and Tamil Nadu, which have a large number of low-skilled workers.

The availability of adequate infrastructure, such as roads, railways, Ports, and Airports, is essential for the smooth functioning of industries. Industries tend to locate near areas with good infrastructure in order to reduce their transportation costs. For example, the Software industry is located in the state of Karnataka, which has a well-developed IT infrastructure.

Government policies can play a significant role in the location of industries by providing incentives, such as tax breaks, subsidies, and land grants. For example, the government has set up special economic zones (SEZs) in various parts of the country to attract foreign Investment.

The level of competition in a particular industry can also affect its location. Industries tend to locate in areas with low levels of competition in order to maximize their profits. For example, the pharmaceutical industry is located in the state of Gujarat, which has a low level of competition in the pharmaceutical sector.

The environmental impact of an industry is also a major concern. Industries tend to locate in areas with less stringent environmental regulations in order to reduce their costs. For example, the chemical industry is located in the state of Gujarat, which has less stringent environmental regulations than other states in India.

These are just some of the factors that can affect the location of industries. The specific factors that are most important for a particular industry will vary depending on the nature of the industry and the location of the market.

Factors responsible for the location of industries

  • Raw materials: Industries are often located near the sources of their raw materials. This is because it is cheaper to transport raw materials than finished goods. For example, iron and steel mills are often located near coal mines and iron Ore deposits.
  • Labor: Industries are also often located near sources of labor. This is because it is cheaper to hire workers who live nearby. For example, garment factories are often located in countries with low wages.
  • Markets: Industries are also often located near their markets. This is because it is cheaper to transport finished goods to customers than raw materials. For example, automobile factories are often located near large cities.
  • Transportation: Industries are also often located near transportation hubs. This is because it is cheaper to transport raw materials and finished goods to and from the factory. For example, oil refineries are often located near ports.
  • Government policy: Governments can also influence the location of industries by offering tax breaks or other incentives. For example, the Indian government has offered tax breaks to companies that set up factories in certain regions.

Factors responsible for the location of industries in India

The factors responsible for the location of industries in India are similar to those in other countries. However, there are some unique factors that influence the location of industries in India. These include:

  • The availability of labor: India has a large and growing Population, which means that there is a large pool of potential workers. This is a major advantage for industries that require a lot of labor, such as the textile industry.
  • The cost of labor: The cost of labor in India is relatively low, which makes it an attractive destination for industries that are looking to reduce costs.
  • The availability of land: India has a large amount of land that is available for industrial development. This is a major advantage for industries that require a lot of space, such as the steel industry.
  • The availability of infrastructure: India has a well-developed infrastructure, including roads, railways, and ports. This makes it easy to transport raw materials and finished goods to and from factories.
  • The government’s policy: The Indian government has a number of policies in place to promote industrial development. These include tax breaks, subsidies, and land grants.

The impact of the location of industries on the Indian economy

The location of industries has a significant impact on the Indian economy. Industries create jobs, generate tax revenue, and contribute to the country’s exports. The location of industries can also affect the distribution of income and wealth in India.

Industries that are located in rural areas can help to reduce POVERTY and improve the standard of living in these areas. However, industries that are located in urban areas can lead to congestion, pollution, and other problems.

The government of India has a number of policies in place to promote the Development Of Industries in rural areas. These policies include tax breaks, subsidies, and land grants. The government is also working to improve the Infrastructure in Rural Areas, such as roads, railways, and power supplies.

The location of industries is a complex issue with a number of economic and social implications. The government of India is working to promote the development of industries in a way that benefits the entire country.

  1. Which of the following is not a factor responsible for the location of industries?
    (A) Raw materials
    (B) Market
    (C) Labour
    (D) Transportation

  2. Which of the following is not a type of industry?
    (A) Primary
    (B) Secondary
    (C) Tertiary
    (D) Quaternary

  3. Which of the following is not a characteristic of a developed country?
    (A) High per capita income
    (B) High level of industrialization
    (C) High level of Urbanization
    (D) Low level of agricultural production

  4. Which of the following is not a characteristic of a developing country?
    (A) Low per capita income
    (B) Low level of industrialization
    (C) Low level of urbanization
    (D) High level of agricultural production

  5. Which of the following is not a factor responsible for the Growth of industries in India?
    (A) Availability of raw materials
    (B) Availability of skilled labour
    (C) Availability of capital
    (D) Government policies

  6. Which of the following is not a type of industry in India?
    (A) Primary
    (B) Secondary
    (C) Tertiary
    (D) Quaternary

  7. Which of the following is not a characteristic of the Indian economy?
    (A) It is a Mixed Economy.
    (B) It is a developing economy.
    (C) It is a Socialist Economy.
    (D) It is a Capitalist Economy.

  8. Which of the following is not a factor responsible for the uneven distribution of industries in India?
    (A) Availability of raw materials
    (B) Availability of skilled labour
    (C) Availability of capital
    (D) Transportation facilities

  9. Which of the following is not a problem faced by the Indian industries?
    (A) Lack of infrastructure
    (B) Outdated technology
    (C) High cost of production
    (D) Low productivity

  10. Which of the following is not a government policy to promote industries in India?
    (A) Providing subsidies
    (B) Providing tax breaks
    (C) Providing infrastructure
    (D) Providing cheap labour

Answers:
1. (D)
2. (D)
3. (D)
4. (A)
5. (D)
6. (D)
7. (C)
8. (D)
9. (A)
10. (D)