Factors Affecting Location Of Industries

1) Raw Materials

Industries are mostly concentrated in places where the required raw material is available, This is espicially
true if the raw material is bulky and heavy for eg: Metals, coals etc. or if the item is perishable in nature for
eg: sugarcane.

2) Availabilty of power resources

Availabilty of power resources like Coal, minerals, oil, hydroelectric power and biogas are of great
importance to th company as it wants adequate supply of power at low cost.

3) Labour

Labour is another factor that affects location of a Industry, Industries need a wide range of labourers to
function efficiently, they need Skilled labour, Semi-skilled labour and unskilled labour.

4) Capital

Captial or money is necessary for every industry. Large Scale Industries in particular have huge captial.
Industries are located near towns and cities as they have easy access to capital, capital requirements are of
2 types Working Capital and Fixed Capital.

5) Means of Transport

Means of transport also plays a very important role in location of industries as they help transport raw
materials to indsutries and finished goods from industries.

6) Proximity to markets

Proximity to markets is another factor controlling the location of a industry. The finished product is taken
from the industry to the market from where it is sold to the required person, being close to the market
allows for quick sales of goods.

7) Government policies

Government develops industrial estates to encourage industries to build their factories is those specific
areas. The government also provides subsidies to industries present is a certian region.