Introduction
- Manufacturing
is the second largest type of production after primary production activity
'of hunting, fishing, mining, lumbering, farming etc. Manufacturing has
undergone a big change as a result of advancement of science and
technology.
- Many
important geographical factors involved in the location of individual
industries are of relative significance, e.g., availability of raw
materials, power resources, water, labour, markets and the transport
facilities.
The location of manufacturing industries depends
upon a number of geographical and economic factors. These factors are known as
factors of localization of industries or agglomeration of industries. The most
important factors are:
(i) Raw
material.
(ii) Source of
Power.
(iii) Labour.
(iv) Means of
transportation.
(v) Market.
(vi) Other factors
like climate, Government Policies, capital, water, land etc.
(i) Raw Material.
- Among the factors influencing location of an
industry, close proximity to raw material availability of regular supply of
cheap raw material are of utmost significance.
- Therefore, industries are set up close to or in the
regions where raw material is available in plenty. This speaks for the
localization of jute industry in West Bengal, Sugar industry in U.P and
concentration of heavy industries in the states of Chattisgarh and West
Bengal.
- If the raw material is heavy and of small value,
the industries are set up in the regions of raw material. Iron smelting,
brick making, cement manufacturing are best examples.
- Iron and
Steel Plants at Jamshedpur (Jharkhand), Rourkela (Orissa), Bhilai
(Chhattisgarh) and Durgapur (West Bengal) have been set up near the
sources of raw material i.e., Iron ore.
(ii) Source of Power.
- All types of manufacturing industries depend upon
one or the other sources of power. It may be coal, oil, electricity, gas
etc.
- In the industries, especially those of ferrous
metallurgy, coal is the main source of power; therefore, these heavy
industries are closely tied down to coal fields. The iron and steel
industry of India in the Damodar Valley of Chattisgarh at Jamshedpur is
located near the coal fields of Raniganj and Jharia.
(iii) Labour.
- Modern industry requires large labour force, both
skilled and unskilled. The availability of cheap labour in a region is an
important factor determining the localization of industries. Different
types of industries require different types of labour force.
- For example, watch-making, electronics,
aeronautics, computers etc. require highly skilled labour, whereas, on the
other hand, cotton textile manufacturing, sugar making, jute textile etc.
employ more of unskilled labour.
- The development of the plantations in Assam and
cotton textiles in Maharashtra are attributed to the availability of cheap
efficient labour.
- In these
regions it has also been seen that industrial centres tend to attract more
industries, because plenty of labour is available in these centres, for
example, Mumbai and Kolkata have become industrial cities of the country
mainly because of availability of plenty of labour in and around these
mega cities.
(iv) Means
of Transportation.
- Industries depend upon efficient and cheap
transportation system, which is essential for the movement of raw material
as well as the finished products. They may be rail, road or water.
- Railway
junctions are considered to be the most suitable sites for the
localization of industries. These enjoy benefits of easy transportation
from different directions. Similarly sea ports also develop as industrial
centres because of availability of facilities of water transportation for
export and import of products.
(v) Market.
- Market is an important factor in determining
localization of industries. Goods are manufactured to be sold in the
market. Industries are generally set up close to urban centres.
- Sometimes, dense population may not prove to be
solid market for the disposal of the different industrial products. If the
people are poor, the purchasing capacity also becomes poor.
- In some of
the Asian countries, where people are poor, industries which are engaged
in the manufacturing of cheap and essential goods like coarse cloth find
an adequate market. This explains why under-developed countries, though
densely populated are poor in manufacturing industries.
(vi) Other Factors.
(a) Climate
- Climate
also plays a part in the location of industries. The stimulating cool
temperate climate is more suitable for the development of industries
because this type of climate adds to the work efficiency of the labour
force.
- This is one of the major reasons why temperate
latitudes have well-developed manufacturing industries rather than the
tropics or the desert or the Tundra regions.
- Climate plays a significant role in location of
cotton textile manufacturing industries. The cool and humid climate helps
in spinning of yarn and weaving of cloth processes. Development of film
industry at Mumbai is due to favourable climate.
(b) Capital.
- Development
of industries requires a large capital investment. It may come from any
source, local or foreign. Banks and other financial institutions play an
important role in the growth of industries from time to time.
(c) Government Policy.
- In
order to give boost to industries in the country, the government gives
certain guidelines, tax exemptions, electricity at concessional rates,
subsidies, rail link etc., if these are set up as per government plan.
- Mohali, an industrial town near Chandigarh has come
up on the industrial map of India because of Government policies. Thus
Government Policy plays a significant role in determining place of
location of an industry. If the Government bans import of foreign cars,
the automobile industry is bound to flourish in that country.
(d) Early Start.
- There
is a tendency to set up new units in the area, where that industry is
already much developed. It is because the area has been enjoying benefits
of developed means of transport, financial institutions, banking
facilities, availability of skilled labour and marketing ease.
- Hosiery industry got concentrated at Ludhiana can
be cited as one example of role of early start.
(e) Personal Preferences.
- Personal
whims, prejudices of an entrepreneur and preferences also matter sometimes
in the setting up of an industry in an area, ignoring all the economic and
commercial considerations.
- In a democratic set up, sometimes political matters
also initiate the establishment of certain heavy industries in certain
regions.
- The setting of a Railway Coach Factory at
Kapurthala in Punjab has been set up due to political interests rather
than economic considerations. Construction of oil refinery at Bhatinda is
another example of a political decision.
Localization of
industries at a place gives rise to a number of problems also. These are:
(i) High cost of living.
(ii) Shortage of living space.
(iii) Sky high land prices.
(iv) Traffic jams.
(v) Pollution.
(vi)
Growth of slums.
Some
of the industries are highly localized in the country. These are due to
combination of a number of geographical and socio-economic factors already
discussed above. The examples are:
1.
Sugar Manufacturing: U.P. and Bihar.
2. Jute Textiles: West Bengal.
3. Cotton Textiles: Maharashtra and Gujarat.
4. Cement Industry : M.P. and Rajasthan.
5. Iron and Steel: Jharkhand and Orissa.
6. Cinematography Mumbai
7. Leather goods: Kanpur, Agra.
8. Hosiery: Ludhiana.
9. Sports goods: Jalandhar.
10. Computers: Bangalore, Hyderabad, Gurgao
In Brief:-