4. Geographical Factors

The location of Industries is complex in nature. They are determined by various factors such as availability of Raw Materials, Land, Water, Labour, Transport, Capital, Power, and Market. The locational factors of industries are classified as Geographical factors and Non-geographical factors.

It is not economical to transport Bulky goods and weight losing materials for long distances. Therefore, industries such as iron and steel and sugar industries are situated near the iron ore and sugar cane fields, respectively.
Salem Steel Plant is situated near Kanjamalai, where iron ore is mined. Similarly, Sugar industries are located near the regions where sugarcane are grown.

Power is one of the basic requirements to run the entire industry. Power is mainly sourced from coal, mineral, oil, and water. In order to fulfil the power requirement, any one of these sources must be located near the industries.

Cheap and skilled labour is another important requirement for labour-intensive industries. (e.g., Tea industry, Jute industry etc.)

Transport is needed for both transporting the raw materials to the industries and to send the finished products to the market. Ease of transportation and cost of transport influence the location of an industry. So, the junction of waterways, roadways and railways become active centres of industrial activity.

At the end of the manufacturing process, finished goods that are ready to reach the market are stored at suitable storage or warehouse till the goods are taken to the market.

It is easy to transport labour and raw materials in the plain region. So, the industry should be established at a flat site.

As climate determines the productivity of the labour force, it is not advisable to establish an industry where the climatic conditions are extreme. The region with optimum climatic conditions is best suitable for successful industrial growth.
Moreover, there are certain industries that require a specific climate.

The availability of water also influences the industrial location. Water is required for manufacturing goods, and also, in some regions, they serve as a cheap mode of transporting the finished good. This is the reason why many industries are established near rivers, canals, and lakes. Iron and steel industries, textile industries and chemical industries require plenty of water for their proper functioning.