QUES . What factors influence the location of industries in India today? UPSC IES/ISS EXAM 2021 General Studies . 200 Words . 5 Marks
HINTS:
Industrial locations are complex in nature. These are influenced by the availability of many factors. Some of them are: raw material, land, water, labor, capital, power, transport, and market.
Availability of Natural Resources: Industries such as mining, agriculture, and forestry require natural resources like minerals, water, and timber. The availability of such resources in a particular region can attract industries that depend on them.
Power: conventional (coal, mineral oil or hydro-electricity) or non- conventional in nature is a necessity for any industrial establishment.
Infrastructure: The presence of well-developed infrastructure, including roads, ports, airports, and rail networks, can attract industries as it reduces the cost of transportation and enables the smooth movement of goods and services.
Labor Availability: The availability of a skilled and affordable workforce is a significant factor in the location of industries. Regions with high population densities and access to education and training centers can attract industries that require skilled labor.
Market Proximity: Industries need access to markets to sell their products. The proximity of an industry to its markets can influence its location decisions, as it reduces transportation costs and facilitates the timely delivery of goods.
Government Policies: Government policies, including tax incentives, subsidies, and regulations, can influence the location of industries. For example, special economic zones (SEZs) offer tax incentives to attract industries to a particular region.
Political Stability: Political stability and the absence of social unrest are important factors that can attract industries as it provides a conducive environment for businesses to operate.
Climate and Weather: The climate and weather of a region can also influence the location of industries, especially those that are weather-dependent such as agriculture and tourism.
Access to Finance: The availability of finance and credit facilities is crucial for the growth of industries. Regions with established financial centers and access to credit facilities can attract industries that require funding.
With scientific and technological advancement, the constraining geographical factors have not remained rigid. Labour has become more mobile, long distance transmission of energy is possible now and alternatives of various raw materials are available. Therefore, new factors have come into play which include skilled managerial services, availability of capital and financial resources and export potential of products.
