[Answered] What are the important characteristics of

footloose industries? What are the factors responsible

for the location of footloose industries?
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responsible-for-the-location-of-footloose-industries/

Demand of the question

Introduction. Contextual introduction.

Body. Discuss the important characteristics of footloose industries and factors that
determine the location of these industries.

Conclusion. Way forward.

Footloose industry is a general term for an industry that can be placed and located in a
wide variety of places without much effect from factors such as raw material. These are
called footloose as these types of industries are prone to relocation. For example, the
diamond and computer chips belong to the footloose industry.

Important characteristics of footloose industries:

1. Location: Footloose industries can be established at any place. These industries

are affected by component parts and they are available at all places.
2. Less labour force: These industries produce their products in small numbers and
they do not require a large labour force.

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 3. Eco-friendly: These are environment-friendly industries as the process involved in
these industries have a negligible carbon footprint. These industries emit less or no
pollution.
4. Less transport cost: Their products are having very high value addition and
smaller in size and so transportation cost is only a small fraction of total cost.
5. Small plant size: These industries require small plant size compared to heavy and
small industries.
6. Less raw material dependence: These are less dependent on specific raw
material, especially weight losing ones. Most of the raw materials are small and light
and can be transported easily.
7. Skilled workers: It needs skilled workers as the industrial process is advanced and
major work needs high-quality precision.

Factors responsible for the location of footloose industries:

1. Connectivity: Location with a good connectivity of roads, railways,

telecommunication, airways etc. are preferred to facilitate quick movement of skilled
workers and high-value outputs.
2. Cheap land: They are located on the edge of cities because the land is often
cheaper than in the center. The out of town surroundings and easy access to
workers in the suburbs provides an ideal location.
3. Accessibility: The important factor in their location is accessibility by transportation
network enabling the workers commute hassle free. The extensive network of
metro, railway and road in NCR helped service industry in Gurugram and Noida.
4. Close to similar industries: They are also located close to similar industries to
facilitate exchange of ideas and knowledge.
5. Raw material independent: The computing and information technology industry
are not tied to raw materials and can choose their own location. The mega cyber
cities like Bangalore and Hyderabad are the best examples.
6. Close to research centres: The Hi-tech industries have to locate close to research
centres like universities. Development in the hi-tech industry happens so fast that
companies need to stay up to date to survive. For e.g. software technology parks in
India.

These industries are crucial for the development of areas which lack locational
advantages with respect to heavy and small industries like port facilities, availability of
raw materials, etc. Good development of the footloose industry can provide high-value
employment opportunities and competitive advantage in world trade.

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