RECENT TRENDS IN THE LOCATION OF
INDUSTRIES
The
traditional factors like nearness of sources of raw materials, motive power,
nearness of markets, labor supply etc have no longer remained the effective
pulling forces in the location of industries. The location trends have changed
substantially due to the development of substitute raw materials, network of
electrification and transportation .The recent trends in the selection of
industrial location can be described as under:
Priority for the suburban areas,The industrialists show their preference for the suburban
area as the site for establishment of a new unit or relocation of the existing
one. The industrial policy of the government does not permit the establishment
of a new unit or expansion of an existing one in city areas. At the same time
infrastructure facilities are developed in the suburban areas.
Industrial development in the notified backward areas,In order to have balanced regional
development, the Central Government as well as the State Government has
notified certain backward areas Different types of incentives like cash
subsidy, tax relief, financial assistance with low interest rates, cheaper land
and power supply etc are provided.
Establishment of Industrial estate,Industrial estate is a piece of vast land sub-divided
into different industrial plots wherein factory sheds are constructed.
Decentralization of industries,Under the conscious industrial policy of the
Government, concentration of industrial units is prevented through licensing
policy. New units are not permitted to be started in certain industrially
congested areas.
Increased role of the Government in the decision of
location of industries,Government through its persuasive
and compulsive methods greatly influences the location decision in recent
times. It provides certain attractive incentives to the promoters to establish
their units in less developed areas, at the same time it does not permit
excessive industrialization in certain developed areas.
REFERENCE
Bogart, W .T( 1998)The
Economics of Cities and Suburbs. Upper Saddle River, New Jersey. Prentice Hall
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