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1. Raw Materials
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- Industries using weight-losing raw materials are located in the regions where raw materials are located.
- Example- sugar mills in India located in sugarcane growing areas similarly, the locations of pulp industry, copper smelting and pig iron industries are located near their raw materials.
- In iron and steel industries, iron ore and coal both are weight-losing raw materials. Therefore, an optimum location for iron and steel industries should be near raw material sources.
- This is why most of the iron and steel industries are located either near coalfields (Bokaro, Durgapur, etc.) or near sources of iron ore (Bhadravati, Bhilai, and Rourkela).
- Similarly, industries based on perishable raw materials are also located close to raw material sources.
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2. Power
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- Certain industries, like aluminium and synthetic nitrogen manufacturing industries tend to be located near sources of power because they are power intensive and require huge quantum of electricity.
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3. Market
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- Provide the outlets for manufactured products. Heavy machine, machine tools, heavy chemicals are located near the high demand areas as these are market orientated.
- E.g. Cotton textile industry uses a non-weight-losing raw material and is generally located in large urban centre, Mumbai, Ahmedabad, Surat, etc.
- E.g. Petroleum refineries are also located near the markets as the transport of crude oil is easier and several products derived from them are used as raw material in other industries.
- Koyali, Mathura and Barauni refineries are typical examples.
- Ports also plays an important role
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4. Transport
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- The reasons for the concentration of industries in Mumbai, Chennai, Delhi and in and around Kolkata
- It was because of the fact that they initially became the nodal point having transport links.
- The industries shifted to interior locations, only when railway lines were laid.
- All major industrial plants are located on the trunk rail routes.
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5. Labour
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- Industries require skilled labour.
- In India, labour is quite mobile and is available in large numbers due to our large population.
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6. Historical Factors
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- The reasons for emerging Mumbai, Kolkata and Chennai as industrial nodes are that these locations were greatly influenced by our colonial past.
- During the initial phase of colonisation, manufacturing activities received new impetus provided by the European traders.
- Places like Murshidabad, Dhaka, Bhadohi, Surat, Vadodara, Kozhikode, Coimbatore, Mysore, etc. emerged as important manufacturing centres.
- In the subsequent industrial phase of colonialism, these manufacturing centres experienced rapid growth due to competition from the goods manufactured in Britain and the discriminatory policies of colonial power.
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7.Industrial Policy
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- Establishment of iron and steel industry in Bhilai and Rourkela were based on decision to develop backward tribal areas of the country.
- At present, government of India provides lots of incentives to industries locating in backward areas.
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