The factors that help in the localization of industries are:
(i) Raw materials there should be a continuous and abundant supply of raw materials. Industries requiring heavy, bulky or perishable raw materials are located near the source of raw material, e.g., iron & steel industry.
(ii) Power for running the industry, availability of power is very essential. Power may be either thermal or hydel.
(iii) Capital A large amount of capital is required for setting up big industries.
(iv) Labour, both skilled and unskilled, is needed for the industries. Our country is densely populated; hence, labour is not a problem.
(v) Transport and communication A network of transport for carrying the raw materials to the industrial units and to carry the finished products to the consuming centres within the country and outside.
(vi) Market/Demand The manufactured commodity must have a good market within the country and outside for internal and external trade.