Factors Influencing Location of Industries

          Raw Material



Man Power



Government Policy

Classification of Industries

Agro based industries

Cotton Textile Industry

  • Cotton textile industry is based on indigenous raw materials, cotton. It contributes about 14% industrial production, provides employment to 35 million persons and 4% towards GDP. Mumbai in Maharashtra is the leading cotton textile centre and it is called as the “Manchester of India”. 
  • The major Cotton textile producing states of India are Maharashtra, Gujarat, West Bengal, Uttar Pradesh, and Tamil Nadu. In Tamil Nadu, Coimbatore, Erode, Tiruppur, Karur, Chennai, Tirunelveli, Madurai, Tuticorin, Salem and Virudhunagar are the major cotton textile centers.

Jute Industry

  • About 4 million farmers are engaged in the cultivation of jute. India tops in the production of raw jute and jute goods and second in the export of jute goods next of Bangladesh. Nearly 90% jute industries are located in Wet Bengal mainly along the Hooghly River. Recently there has been dispersal of jute industries in Uttar Pradesh, Bihar, Odisha and Andhra Pradesh.

Sugar Industry

  • India Sugar Industry is the second largest agro based industry in India. Uttar Pradesh and Bihar alone account for 70% of the sugar production. So this belt is known as ‘sugar bowl of India’. Punjab, Haryana, Maharashtra, Karnataka, Andhra Pradesh and Tamil Nadu are the other Sugar producing states of India.

Forest Based Industries

Paper industry

  • Paper industry is a vital and core industry for any country. The Raw materials for paper industry include wood pulp, bamboo, salai and sabai grasses, waste paper and bagasse. Location of the industry and greatly influenced by bulky raw materials and to a lesser extent by market.
  • The leading states in paper production in our country are West Bengal, Maharashtra, Madhya Pradesh, Karnataka and Andhra Pradesh.

Mineral Based Industries

  • The major mineral based industry of our country is the iron and steel industry.

Location or Iron and Steel Industries in India

  • India’s major iron and steel industries are located either near the coal fields or iron ore mines or midway between the coal and iron ore fields. Most of our country’s major iron and steel industries are located in the Chota Nagpur Plateau region.

Distribution of Iron and Steel Industries

  • India has 11 integrated steel plaints and 150 mini steel plants and a large number of rolling and re rolling mills.
  1. Tata Iron and Steel Company (TISCO)
  • In 1907 Tata Iron and Steel Company was setup at Jamshedpur now it is called Tata Steel limited. It is the oldest and the largest integrated iron and steel plant in India. It is the 10th largest producer of Iron and Steel in the World. The company produces pig iron and steel.
  1. India Iron and Steel Company (IISCO)
  • The steel plants at Kulti, Burnpur and Hirapur were intergrated and the India n iron and steel company was setup at Burnpur in 1919. The control and management of IISCO were taken over by SAIL (Steel Authority of India) in 1972. The company produces Pig iron and crude steel.
  1. Visveshwaraya Iron and Steel Limited (VISL)
  • Visveshwaraya Iron and Steel Limited were set up in 1923 at Bhadravati in Shimoga district in Karnataka. Its major products are alloy and special steel.
  1. a. Hindustan Steel Limited (HSL)-Bhilai
  • The HSL – Bhilai is located in the Durg district of Chattisgarh, stated its production is 1959 Bhilai’s rail and structural mill are one of the most modern and largest in the world. It has also started making plates for ship building industry.
  1. b. Hindustan Steel Limited (HSL)-Rourkela
  • The Rourkela plant was started in 1965 in the Sundargarth district of Odisha. Its major products include hot and cold rolled sheets, galvanized sheets and electrical steel plates.
  1. c. Hindustan Steel Limited (HSL)-Durgapur
  • The Durgapur steel plant is located at Bardhaman district of West Bengal. It was setup in 1959. It started its production in 1962.  This plant specializes in the manufacture Of alloy steel, construction material and railway items like wheel axles and sleepers.
  1. d. Hindustan Steel Limited (HSL) – Bokaro
  • The Bokaro steel plant is situated in the Hazaribagh district of It started its operation in  1972.  The sludge and slog of the plant are used in making fertilizer at Sindri.
  1. The Salem Steel plant
  • The Salem steel plant is located at Salem is Tamil Nadu and started its production in 1982. This plant is the major producer of the world class stainless steel which is exported to many advanced countries in the world.
  1. The Vijayanagar Steel Plant
  • The Vishakhapatnam steel plant came into operation in 1992. This is the first plant in the shore region. This is the most sophisticated and modern integrated steel plant in the country.  It is a major export oriented steel plant.

Automobile Industry

  • The first automobile industry was started at Kurla (Mumbai) in 1947 under the name of Premier Automobile limited. In 1948 Hindustan motors limited setup the automobile industry at Uttarpara, (Kolkata). In the last 30 years, India has made a tremendous progress in the  industry by  manufacturing commercial vehicles, passenger cars, jeeps, scooters, motorcycles, mopeds and three wheelers.
  • The major centers are Mumbai, Chennai, Kolkata, New Delhi, Pune, Ahmedabad, Lucknow, Satara and Mysore.

Electronic Industries

  • The electronic industry in India started with radio manufacturing in the 1850s. The setting up of Indian Telephone Industry in 1950 at Bangalore (Bengaluru) gave a boost to this industry.  Bangaluru is the leading producer of electronic goods and it is referred as Electronic Capital of India.

Software Industry

  • The main reason for its rapid growth is due to the availability of cheap and skilled young software professionals in our country.
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