Footloose industries can be located in a wide variety of places. They are not dependent on any specific raw material, weight losing or otherwise. They largely depend on component parts which can be obtained anywhere. Hence statement 1 is correct . Diamond and Computer chips industries are types of footloose industries. Hence statement 2 is correct. The cotton textile industry uses a non-weight-losing raw material and is generally located in a large urban centre, e.g. Mumbai, Ahmedabad, Surat etc. butit is not a footloose industry as it requires agro-based raw material. These are called footloose as these types of industries are prone to relocation.