Factors responsible for industrial location are as follows:
(i) Availability of raw material is one major basic factor for the location of any industry, e.g. jute mills in West Bengal are concentrated close to the source of raw material.
(ii) Climate also plays a major role in the concentration of industries at a certain place. Favourable weather conditions required for the growth and harvesting of the crop causes its industries to be located in certain places. E.g. Cotton textile industry are generally found in Maharashtra and Gujarat because of favourable climatic conditions.
(iii) Availability of capital and other infras- tructural facilities is also one reason. It is due to the availability of capital that Mumbai, Kolkata and Chennai became big industrial centres. These places have banking facilities and well developed infrastructure.
(iv) Availability of both skilled and unskilled labour also governs the location of an industry. Cheap and abundant labour is one necessary condition which affects location of an industry.
(v) The entire process of manufacturing is futile until the finished products reach the market and the consumers. Thus, availability of a good market near by also benefits the owners.
(vi) Government policies, peace, protection of environment play a vital role in the location of industries.