3.2.2. Non – Geographical Factors

Apart from the geographical factors, there are various other factors which decide the location of industries in the country. Following are some of the important non-geographical factors which influence the location of industries in the country-

Capital: Modern industries are capital intensive and require huge investments which are generally available in urban centres. Hence, many urban cities have become hub for major industries in the country.

Government Policies: Government activity in planning the future distribution of industries, for reducing regional disparities, elimination of pollution of air and water and for avoiding their heavy clustering in big cities has become an important factor. There is an increasing trend to set up industries in an area where the government policies are favourable and promote industry friendly policies.

Industrial Inertia: Industries tend to develop at the place of their original establishment, though the original cause may have disappeared. This phenomenon is known as geographical inertia or industrial inertia.

Banking Facilities: Establishment of industries involves daily exchange of Crores of rupees which is possible through banking facilities only. So areas with better banking facilities are better suited to the establishment of industries.