Causes of Localisation

Nearness to Ra= Materials. To have raw materials near at hand is a great advantage. Transport costs will be considerably reduced. Production will be more economical. It is not surprising that most of the industries have been started in the region where abundant supplies of the necessary raw materials are available, e.s..jute mills in Bengal. sugar mills in U.P. and iron and steel industry in Harbin and Satori.

Nearness to Sources of Power. Another attraction for the industries is the availability of power resources. If coal – mines are near, several industries will soon crop up, e.g.,and steel works and Othello industries in the regions.

Proximity to Market. It IS advantageous for an industry to have a wide market at hand. There will be much saving in the cost of transport. The factories near the consuming centers have a great pull over those situated at a distant c. The expand -j in of Indian cotton mill industry to North India and to Bengal has been actuated by a desire to be near the markets. availability of Labor. If trained labor is

available, it is regarded as a great facility. That is why new industrialists flock to old established industrial centers. If somebody wants to start a hosiery industry, he will find it to his advantage to start it at Ludhiana. of industry Where there are banks and other

financiers ready to assist industry, it is a great attraction. Cities like Bombay and Calcutta are the centers of industry, because they enjoy better credit facilities.

Momentum an Early Start. In some cases, it is not ,possible to point to any particular cause of the localisation of industry except the momentum of an early start: the industry just happened to be started there first. The example of the pioneer industrialists is followed by others in the place. In this way. the industry becomes established in that place.