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Factors Affecting Location of Industries

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Factors Affecting Location of Industries - Lesson Summary

There are several factors that affect the location of industries like the availability of raw material, land, water, labour, power, capital, transport and market. Industries are usually located in temperate areas, sea ports and coal mines. When many industries are located close by, the place becomes known as an industrial region.

This is the reason why a government provides incentives like subsidised power, low transport cost and infrastructure to industries located in the backward regions of the country.

The three steps involved in an industrial cycle are: Input, Processes and Output.

The first step is putting together the inputs, like raw material, labour, cost of land, transport, power and other infrastructure. The second step is the process, which includes a wide range of activities that convert the raw material into finished goods like ginning, spinning, weaving, dyeing and printing. The final step is the finished product or the output that we use.

The major industrial regions in India are the Mumbai-Pune region, Bangalore–Tamil Nadu region, Hugli region, Ahmadabad–Baroda region, Chhota Nagpur industrial region, Vishakhapatnam–Guntur belt and the Kollam–Thiruvanathapuram industrial belt.

Industrial workers are sometimes required to work in a dangerous environment. Any lapse in the regular maintenance of technical equipment or irresponsible handling of hazardous material may lead to accidents.

There are some risk reduction measures, which, if followed, can prevent large-scale disasters like:
  • Industrial areas should be on the outskirts of a city or town, or located far away from residential areas.
  • People in the vicinity of the industrial area should be aware of the hazardous materials handled in these industries and their effects on humans in case of an accident.
  • Improvement in the fire warning systems, fire fighting systems and in pollution dispersion qualities and limiting toxic storage capacity within these industries will reduce the risk of a large-scale disaster considerably.


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