What are the Factors Affecting Industrial Location in India?

By BYJU'S Exam Prep

Updated on: November 9th, 2023

The factors affecting industrial location in India are raw materials, power supply, water supply, market and labour accessibility, and connectivity. These are the various factors affecting the location of the industry that one should consider before setting up a business. The establishment of industrial areas requires dedicated provisions of the mentioned resources for steady development.

Factors Affecting the Location of Industry in India

As discussed above, the factors affecting the location of the industry include the availability and supply of many resources. To accommodate the demands of emerging industries, the government might offer them incentives like the development of infrastructure, subsidized power and water supply, labour support, etc.

  • Generally, the Industries are situated where either a few or major factors affecting the location of the industry are readily available.
  • To grow industries in backward areas, the government supplies money for electric power, decreases transportation costs, and helps improve the overall infrastructure.
  • Expanding industries, also known as industrialization, contributes to the evolution and growth of towns and cities.

Since the advent of industrialization leads to the growth of cities, we must consider the factors affecting the location of these industries carefully.

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