Factors Responsible for the Location of Primary, Secondary and Tertiary Sector Industries in Various Parts of the World (Including India)

Factors Responsible for the location of primary, secondary, and tertiary sector industries in various parts of the world (including India) is a topic mentioned in General Studies Paper 1(GS1) for UPSC Mains. Basic concepts related to Primary, Secondary and Tertiary Sectors are covered in our post on Sectors of Economy : Primary, Secondary, Tertiary, Quaternary and Quinary. In this section we shall see an outline of factors. In coming posts we shall see some specific examples of certain industries in UPSC exam perspective. We have used NCERT texts for geography as the starting material, taking extra inputs from online and offline sources.

Factors responsible for location of Industries

Industrial locations are complex in nature. These are influenced by availability of many factors. Some of them are : raw material, land, water, labour, capital, power, transport and market.

Factors Responsible for the Location of Industries

For ease of convenience we can classify the location factors into two: geographical factors and non-geographical factors.

Geographical Factors

  1. Raw material : Availability of natural resource that can be used as raw material.
  2. Technology : To turn the resource iinto an asset with value.
  3. Power : To utilize the technology.
  4. Labour : Human resource in the area who can function as labour to run the processes.
  5. Transport : Road/rail connectivity.
  6. Storage and warehousing.
  7. Marketing feasibility.
  8. Characteristics of land and soil.
  9. Climate.
  10. Precipitation and water resources.
  11. Vulnerability to natural resources.

Non-geographical Factors

  1. Capital investment.
  2. Availability of loans.
  3. Investment climate.
  4. Government policies/regulations.
  5. Influence of pressure groups.

It is rarely possible to find all these factors available at one place. Consequently, manufacturing activity tends to locate at the most appropriate place where all the factors of industrial location are either available or can be arranged at lower cost. In general it should also be noted that both lower production cost and lower distribution cost are the two major factors while considering the location of an industry. Sometimes, the government provides incentives like subsidized power, lower transport cost and other infrastructure so that industries may be located in backward areas.

Also read:  Union Budget of India 2016-17: Highlights and Analysis

Industrial System

An industrial system consists of inputs, processes and outputs. The inputs are the raw materials, labour and costs of land, transport, power and other infrastructure. The processes include a wide range of activities that convert the raw material into finished products. The outputs are the end product and the income earned from it. In case of the textile industry the inputs may be cotton, human labour, factory and transport cost. The processes include ginning, spinning, weaving, dyeing and printing. The output is the shirt you wear.

Connection between Industrialization and Urbanization

After an industrial activity starts, urbanisation follows. Sometimes, industries are located in or near the cities. Thus, industrialisation and urbanisation go hand in hand. Cities provide markets and also provide services such as banking, insurance, transport, labour, consultants and financial advice, etc. to the industry.

Agglomeration Economies

Many industries tend to come together to make use of the advantages offered by the urban centres known as agglomeration economies. Gradually, a large industrial agglomeration takes place.

Industries in pre-Independence period

In the pre-Independence period, most manufacturing units were located in places from the point of view of overseas trade such as Mumbai, Kolkata, Chennai, etc. Consequently, there emerged certain pockets of industrially developed urban centres surrounded by a huge agricultural rural hinterland.

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