What are the Factors Affecting Location of Industry?

By Ritika Pant|Updated : July 14th, 2022

There are various factors affecting the location of the industry that one should consider before setting up a business. The availability of given components can affect any industry:

  • Abundant sources of raw material 
  • Significant land area 
  • Plentiful water
  • Availability of labour
  • Cheap supply of power
  • Sufficient capital and assets 
  • Transport facilities 
  • Proximity to market

Factors Affecting Location Of Industry & Government Initiatives 

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.

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What are the factors affecting location of industry FAQs

  • Various aspects help the industry establish a particular place. Other than the basic ones, below are the additional factors affecting the location of industry like finance, personal factors, strategic considerations, natural and climatic considerations, external economies, and miscellaneous factors. 

  • The requirements of every industry differ. So, the factors affecting the location of the industry will change depending on the type of industry. For instance, if anyone wishes to open a food industry, they must have an abundant supply of raw materials needed to make that food item.

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