5.1 Introduction:Industrial location is a field of study that interests both economists and geographer,because the location of industries is of particular importance in studying the internalstructure of regions and in many cases, guides the pattern of spatial development.The theory of industrial location attempts to explain answers for three importantquestions. They are;Why the industries are located where they areWhy the locations are shifted,And what can be the best location for a particular industry keeping in view theresource endowments of different regions, transport network , existing demand,potential demand etc.,There are different versions developed by different economists on the theory of industrial location. Each one of them tries to find out the reasons for industriallocation in an economy. Among them, the first attempt in developing a theory of location was made by a German scholar, Von Thunen, in regard to agriculturallocation. Thunen, considered the problem of location for various forms of agriculturalproduction in relation to markets.