Important Facts Related to this Issue

  • In a developing country like India, the Iron and Steel industry has taken advantage of cheap labor, raw material, and the demanding market.
  • Bhadravati and Vijay Nagar in Karnataka, Visakhapatnam in Andhra Pradesh, and Salem in Tamil Nadu are essential steel plants established utilizing local resources.
  • The densely populated areas like Gujarat and Maharashtra provide skilled and semi-skilled labor, favorable factors for industries.
  • Ahmedabad was the second-largest textile city and was referred to as the ‘Manchester of India‘. 

Non-geographical Factors Needed for Industries

Many factors influence the establishment of an industry in a particular region or location. Apart from geographical factors such as land, raw material resource, energy supply, etc., a range of non-geographical factors also determines the location and presence of industries in a region. These factors include a source of capital, labor supply, market demand, and many other factors. Non-geographical factors can be related to that region’s economic, social, or political environment that generates some favorable conditions for the establishment and functioning of the industries. In general, industrial establishments tend to locate where all the favorable factors of industrial activities are either available or can be arranged conveniently at a lower cost. The location decisions of the industry have been generally based on demand, market, and revenue factors which often are affected by several non-geographical factors.

Non-Geographical Factors for Industries

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Non-Geographical Factors that Influence Presence of Industries:

The non-geographical factors that influence the location and presence of industries include various financial, regulatory, and human resource factors that determine the cost of production and distribution, eventually affecting the business’s efficiency and profitability. Some of the critical factors are discussed as follows:...

Important Facts Related to this Issue:

In a developing country like India, the Iron and Steel industry has taken advantage of cheap labor, raw material, and the demanding market. Bhadravati and Vijay Nagar in Karnataka, Visakhapatnam in Andhra Pradesh, and Salem in Tamil Nadu are essential steel plants established utilizing local resources. The densely populated areas like Gujarat and Maharashtra provide skilled and semi-skilled labor, favorable factors for industries. Ahmedabad was the second-largest textile city and was referred to as the ‘Manchester of India‘....

Examples of Non-Geographical Factors:

There is a trend of the establishment of many industries in an area where they will get the advantage of resources that can be geographical and non-geographical. Often non-geographical factors become major deciding factors for business establishments. The history of the Indian cotton textile industry in and around Bombay in the early days was mainly due to wealthy and enterprising Parsi and Bhatia merchants who supplied vast financial resources. Another influencing factor for the cotton industry was Bombay’s cheap and excellent transportation network. Government policies introduced during the five-year plans greatly influence the establishment and growth of industries in various parts of India....

Conclusion:

The location of an industry depends on various factors, both geographic and non-geographical factors. In the present scenario, the availability of alternative raw materials, access to modern technology, power supply over more expansive areas, and the increasing mobility of labor have reduced the influence of geographical factors and increased the effect of non-geographical factors on the location of industries....