secondary activities Flashcards
Define factories
The place where conversion of products obtained from primary
activities into final products takes place, is called ‘factory’
Physical factors
- Climate
- Availability of raw materials
- Water and power supply
- Labour
- Transportation
- Site or availability of land
Climate
Industries cannot be developed in harsh climates such as very hot or humid and very cold
For eg: North India and NortH west india’s climatic conditions hinder the development of industries there
Also changes in climatic conditions such as frequent droughts also affect industries
In contrast, the climate of western coastal areas in congenial for development of industries
Labour
Different industries require different labour
For eg: construction, textile and mining industries require semi-skilled labour while ornament making, food-processing require skilled labour
In spite of mechanisation, industries still require a large workforce. therefore, labour colonies can be found near industries.
Availability of raw material
The raw material used by industries mainly comes from forests, farms, mines, fisheries, etc.
The location depends on type of raw material
The industries requiring perishable, heavy or weight losing raw material are located near the production area
eg: industries producing fruit are located near mahabaleshwar or nagpur
Water supply and power
All industries require water for various processes such as smelting, cooling, washing, etc. Therefore they are located near rivers, lakes,etc.
Industries require coal, electricity and oill for running machinery
Industries that require coal are located near mines as coal is heavy and bulky
Industries requiring electricity and oil need not be near the sources as it is easy to transport them through wires and pipelines
Transportation
Industries require adequate and cheap transportation
Industries that require perishable or heavy raw material are located near the sources to reduce costs
The cost and time required for transportation of goods is called economic cost
Non-perishable goods can be transported through cheaper means such as waterways
Site or availability of land
Land is required for development of industries. It needs to be flat and easily accesible.
Earlier industries were developed in urban areas but nowadays due to increasing rates and lack of land they are being developed in rural areas.
For eg: Lote parshuram industrial area near chiplun and chakan in pune
Economic factors
- Proximity to market
- Capital
Proximity to market
Nearness to market is essential for quick disposal of manufactured goods
Near markets are required for perishable and bulky goods
Some products become perishable and bulky after the manufacturing process such as cakes
Therefore the industries are located near the market
Near markets reduce the cost of transportation and enable the consumer to get the products at cheaper costs
Capital
Capital or huge investments are required for develoment of industries.’Industries are located where there are banking and financial facilities.’As a matter of fact, banking and financial facilities develop near industrial areas. Cities like mumbai, delhi, kolkata have better banking facilities. nowadays due to developent of facilities in rural areas, industries can be located there
Political factors
- Government policies
- Setting up SEZs
Government policies
The government may give boost to industries producing certain goods by giving several incentives. It may provide finance, land, water, transport and communication facilities at subsidised rates. It may promote industrialisation in economically backward regions with a view of developing these regions. It also provides tax concession, marketing consultancy, export and import facilities to industrialists and entrepreneurs, who establish industries in such regions. For example, the ‘D and beyond’ categories of Government of Maharashtra’s industrial policy. At the same time, government may also discourage location of industries in a particular area like coastal zones or ecosensitive areas
Setting up SEZs
Many governments support establishing such zones or regions which are specially developed for industrial production. In India, they are called Special Economic Zones (SEZs). They are specially
earmarked geographical zones, which can be developed by private sector or public sector or in a public-private-partnership
(PPP) model. These are mainly developed to boost export–quality production in the country. Such SEZs attract many industries to be set up there. For example, SEEPZ near Santa Cruz.
Other factors
- Split location
- Economies of scale or agglomeration