Factors Affecting Location of Industries

The split of industries in India is exceedingly unequal. This is due, in part, to the unequal distribution of necessary raw materials and electrical supplies, as well as, in part, to the concentration of enterprises, economic ability, as well as other necessary conditions in large cities. Not all industries can be found anywhere, just as not all vegetation cannot be produced everywhere. Certain industries have a tendency for certain places. The availability of raw resources is undoubtedly important, but it is not the only one. This article will cover the knowledge of industrial factors that are affecting the location of industries. 

What Is An Industry? 

An industry is a collection of businesses that are associated with their core business activities. There are hundreds of industry classifications in modern economies. Industry classifications are often divided into larger groups known as sectors. Individual businesses are often grouped into industries depending on their primary revenue streams. For example, even if a car manufacturer had a financing segment that provides 10% of total income, most categorization methods would classify the company as an automaker.

Therefore, the industry is a group of productive firms or organizations that generate or supply goods, services, or income sources. In economics, industries are divided into four categories: primary, secondary quaternary, and tertiary, secondary industries are even further divided into heavy and light.

Farming, forestry, fisheries, mining, quarries, and mineral exploitation are all part of a country’s economy. Primary industry dominates the economy of developing and underdeveloped countries, but then as secondary and tertiary sectors expand, primary industry’s share of economic output declines. Secondary industry is classified as heavy, large-scale, light, or small-scale.

What Is An Industrial Location?

In academic terminology, industrial geography, and industrial location both relate to the research of the unequal distribution of manufacturing activity and its implications for the development of places of various sizes. The former is differentiated from that by a limited focus on the locations for new plants instead of a broader focus with the many variables determining manufacturing distribution.

Human spatial behavior is predicated on hundreds of spatial decisions, from stepping across such a room to driving a car to the workplace to choosing a home or industrial location. These decisions inevitably entail navigating sets of stimuli with both physical and perceived properties and dimensions. The stimuli are subjective in the notion that they are conveyed to the sensory organs of an individual as components of his or her surroundings. Individuals must see, discriminate between, and evaluate the stimuli they experience in terms of the previously purchased spatial knowledge and comprehension of the appropriate environment in order to respond purposefully to their environments.

A considerable body of literature has examined the impact of environmental legislation on industrial placement. The initial wave of studies, which began in the early 1980s, relied on surveys of industry executives in charge of site placement decisions. Environmental regulations were frequently low on the list of considerations for site selection for these managers.

By the late 1980s, the second wave of research that empirically investigated the drivers of site placement started emerging. In general, these assessments analyzed the location of new plants or foreign investment as a function of a range of state-specific criteria, such as environmental regulatory stringency.

What Are The Main Factors That Influence The Location Of An Industry?

The most significant factors affecting industrial location are market, capital, water, electricity, transportation, labor, land, and raw material availability. Several factors are listed below,

• The location in which industries are placed is where all of the following criteria are easily accessible.
• Industrialization frequently leads to the expansion and growth of cities and towns.
• When industries are positioned close to one another and enjoy the advantages of their proximity, industrial areas form.
• To encourage industries in underserved areas, governments typically offer incentives such as improved infrastructure, cheaper transportation costs, subsidized power, and so on.
• Large industrial zones tend to be located near coal fields, near seaports, and temperate climates.
• Major industrial regions in India include the Mumbai-Pune cluster, the Gurgaon-Delhi-Meerut region, the Bangalore-Tamil Nadu region, the Chota Nagpur industrial belt, the Hugli region, the Vishakhapatnam-Guntur belt, and the Ahmedabad-Baroda region.
• Eastern Asia, Western Europe, Central Europe, Eastern Europe, and eastern North America are the world’s major industrial regions.
• Russia, China, Japan, Germany, and the United States are the countries with the most concentrated steel and iron industry.
• Textile industries are centered in South Korea, Taiwan, India, Japan, and Hong Kong.
• The biggest information technology industry hubs are India’s Bangalore region and Central California’s Silicon Valley.

Conclusion

Similar businesses are classified as industries, and there are several industries, such as departmental stores and shoemakers. The major product that a corporation manufactures or sells determines the industry classification. Meanwhile, industries are classified into sectors. Similar firms are classified as industries depending on the major product manufactured or sold. This effectively generates industrial groups, which can subsequently be utilized to separate firms from others who engage in various activities. Investors and economists frequently examine sectors to know the factors that influence and limit business profit growth. Companies in the same industry can be compared to determine a company’s relative attractiveness within that industry.