Cotton Industry – UPSC GS1

What are the important factors that determine the location of an industry? With suitable examples, examine the factors responsible for the location and growth of cotton industry around the world. (200 Words)

Factors that affect the location of an industry can be broadly divided into two categories
1).Geographical factors
2). Non-geographical factors.
·  Land : cheap and easy land acquisition procedures is very important;
·  Raw materials:  industries tends to be located where there is easy availability of raw materials
· Power
· Labour
· Transport
· Market
· Water
· climate
· Capital;
· Government policies: investment friendly government attracts industries;
· Insurance , banking facilities and financial institutions;
· Stable economic and political situation.
Factors responsible for the location and growth of cotton industry around the world are:
  1. climatic conditions apply much influence on the location of cotton industry. A considerable humid condition is must otherwise the cotton yarns would break up during the spinning process. Dry conditions are detrimental to cotton production
  2. Raw cotton availability is undoubtedly essential. But with improvement in transportation and cross border linkages, there has not been much difference in the prices of raw cotton near the farms and far away. So, it has in certain sense lost much importance in determining industry location.
  3. Cotton industry requires significant power .Therefore it is generally located near power plants.
  4. The textile industry is preferably set up where market is close and easily accessible. Restrictions and regulation on imports and exports along with duties affect the choice of location of cotton industry.
All these are the reasons why we see cotton industries concentrated in coastal areas in India like Mumbai,Tamil Nadu and Gujarat. They provide humid conditions, good markets and have excellent port facilities. But, no single set of factors are responsible for cotton industry location globally. Factors in India and Britain with regard to cotton industry location are significantly different. But factors like power, climate and labour are key and true for everywhere.



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