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Course: Expected Questions Geo-Mains Paper GS- 1 Presented by Ashna Sisodia
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Question 41: Write a note on the locational factors of auto industry and their growth trend in India. (200 Words)
Answer Location factors: 1. Automobile industry is located near to iron and steel producing centers because steel is the basic raw material (Jamshedpur and Jabalpur) 2. Availability of places producing Tire, tubes, window glasses, paint, textiles and other ancillary industries is also considered to be an advantage to the industry. 3. Port cities are also chosen due to availability of import and export facilities (Calcutta, Mumbai, Chennai) 4. But today the automobile industry prefers those locations which offer ready market for manufactured products (Gurgaon and Manesar). 5. Demography of area nearby, depending on youth, middle aged, rich poor etc. Urban and Rural divide also significant locational factor.
6. Local economy: Like in Madhya Pradesh and Haryana major automobile production is focused on agricultural heavy equipment's like tractors, harvesters, threshers, sorter, loader, bale maker, electric chaff cutter etc. while in urban area major focus on 2 wheeler or 4 wheeler based on income of people 7. Government Assistances like soft loans, lands for SEZs, relaxed labour laws, electricity, tax holidays and setting up ITI and Diploma colleges nearby Slowdown in global economy, lack of innovation (R&D), electricity fluctuation, strikes by labor unions due to strict labor laws, rural income linked with monsoon leads to fluctuations in demand, regulatory complexity, Infrastructure problems and acquisition, poor roads, high interest rates are some challenges which Indian automobile Industry is facing
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