MANUFACTURING INDUSTRIES [Industrial Location]

Industrial Location

Industrial locations are complex in nature. These are influenced by availability of raw material, labour, capital, power and market, etc. It is rarely possible to find all these factors available at one place. Consequently , manufacturing activity tends to locate at the most appropriate place where all the factors of industrial location are either available or can be arranged at lower cost. After an industrial activity starts, urbanisation follows. Sometimes, industries are located in or near the cities. Thus, industrialisation and urbanisation go hand in hand. Cities provide markets and also provide services such as banking, insurance, transport, labour, consultants and financial advice, etc. to the industry . Many industries tend to come together to make use of the advantages offered by the urban centres known as agglomeration economies. Gradually, a large industrial agglomeration takes place. In the pre-Independence period, most manufacturing units were located in places from the point of view of overseas trade such as Mumbai, Kolkata, Chennai, etc. Consequently, there emerged certain pockets of industrially developed urban centres surrounded by a huge agricultural rural hinterland.

The key to decision of the factory location is the least cost. Government policies and specialised labour also influence the location of industry .

INDUSTRIAL LOCATION

Very Short Answers:-

1. Which two factors do affect the location of industries?

Ans. 

(1) Availability of raw materials.

(2) Power, market and cheap labour.

2. What are agglomeration economies?

Ans. Many industries tend to come together to make use of the advantages offered by the urban centres known as agglomeration economies.

3. Which factor is considered as the most prominent one for the location of an industry in a region?

Ans. Availability of raw materials.

Long Answers

1. Describe five human factors responsible for the location of industries.

Or

Name the factor which plays the most dominant role in the ideal location of an industry. Explain any four reasons in support of this factor.                                                                        

Ans.

(i) Availability of raw material: The factory needs to be close to the location of raw materials if they are heavy and bulky to transport. For example, iron and steel and cement industries are located near the source of raw materials. It cuts down the cost of transportation.

(ii) Labour: A large and cheap labour force is required for labour-intensive manufacturing industries. High-tech industries have to locate where suitable skilled workers are available.

(iii) Power: Power supply is needed for working of the machines in a factory. Earlier industries were near to coalfields. Today, electricity allows more freedom.

(iv) Capital: This is the money that is invested to start the business. The amount of capital will determine the size and location of the factory

(v) Transport: A good transport network helps to reduce costs and made the movement of raw materials and finished goods easier.

(vi) Market: An accessible place to sell the products is essential.

(vii) Government policies: Industrial development is encouraged in some areas and restricted in others. Industries that are located in deprived areas may receive financial incentives and assistance from the government in the form of low rent and tax rebates.