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2. Medium Scale Industries : The indus- requirement for iron and steel industry, jute
tries which employ neither very large nor industry, paper industry and many others.
very small number of labourers, are put in 2. Human-made Factors : These non-
the category of medium scale industries. geographic factors include sources of raw
Cycle industry, radio and television indus- materials. In the earlier years, many indus-
tries are some examples of medium scale tries used to be located around coal mines.
industries. It was used both for heating an energy.
3. Small Scale Industries : Small scale Now, coal is used to produce thermal
industries (SSI) are those industries in which electricity which can be transmitted through
manufacturing, providing services, produc- over long distances. Similarly, just about
tions are done on a small scale or micro half-a-decade back, fertilizer industries were
scale. For example, these are the ideas of located in Gujarat and Mumbai where gas
small scale industries — napkins, tissues, was easily available. Now, gas is transported
chocolates, toothpick, water bottle, small through pipes so these indusries are now
toys, papers, pens. Small scale industries located near markets in Punjab, Harayana
play an important role in social and eco-
nomic development of India. These indus-
tries do a onetime investment in machinery,
plants, and industries which could be on an
ownership basis, hire purchase or lease
basis.
and Uttar Pradesh. Other imporant factors
include transport communication, banking,
labour, etc. Similarly, government also plays
a major role in location of industries. In
Factors Affecting Industrial Location order to promote industries, government
The factors that influence location of industries creates industrial regions, industrial parks,
can be divided into two main categories — sets up sheds, provides various types of
geographic and human-made factors. facilities. It is difficult to assess importance
1. Geographic Factors : These include relief, of one factor over the other. Sometimes, it
climate, water and other geographic may not even be possible to separate
resources. For example, cotton textile geographic factor from non-geographic
industries prefer humid climate because the factor because of inter-dependence.
thread does not often break under condi- Therefore, all these factors that affect
tions of humid climate. Similarly, relief location of industries are relative terms.
determines transport, communication and Industrial Regions
affects other factors. Water is essential Closely associated with factors that influence
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