Factors Affecting location of the industry:

1. Availability of Raw Material.
2. Electricity supply
3. Transportation Facility (Nearby railways or seaports to transport huge products).
4. Nearness to the market: production can be carried on accordance with the changes in consumers tastes.
5. Availability of labour: Abundant availability of labour is a important factor. Sustain sector requires labours with some set of skills. Textile Industry near Bombay is due to the availability of cheap labour.

Agglomeration Economies:

Industries come together to make use of the advantages offered by the urban centre.

Foot loose Industries:

Industries than can be placed at any location without effect from factors of production such as land, labour, capital and resources.

Eg: Computer chips, mobile manufacturing, Diamond cutting.

Agro Based Industries:

Industries that are based on Agricultural raw materials.

E.g.: Cotton, Jute, Silk, etc.,

Textile Industry:

Textiles has been a major component of the industrial sector. It accounts for nearly a fifth of the industrial output and a third of the export earnings. In term of employment, it comes next only to agriculture sector Textile Industry worth upto 14% of total Industrial production. It contributes 4% of GDP. It is the only self-sufficient Industry in the Country.

Cotton Textiles:

India’s Textile Industry is predominantly based in cotton Industry. India is one of the largest producers as well as exporter of the cotton Yarn. This Industry has close links with agriculture and provides a living to farmers.

India accounts for 1/4th of World cotton trade but in terms of trade in garments it’s only 4% World GDP. This is due to poor technology penetration in Weaving and knitting units.

Ahmedabad is known as ‘Manchester of India’ due to it conducive environment and well-integrated cotton industry sectors.

COTTON TEXTILE INDUSTRY

The industrial development in India began with the establishment of first successful modern cotton textile mill at Mumbai in 1854. Since then, the industry has witnessed a phenomenal growth.

Cotton textiles have an important place in the economy of the country. It provides employment opportunities to a large number of people. About one fifth of the total industrial labour is absorbed by this industry. Cotton textile industry comprises of three sectors: Mill Sector, Handloom and Power loom.

Distribution: Cotton textile industry is one of the most widely distributed industries in our country. These mills are located in more than 88 centres in different parts of the country. But majority of cotton textile mills are still located in the cotton growing areas of the great plains and peninsular India.

Maharashtra is the leading producer of cotton textile in the country. Mumbai is the major centre of textile mills. About a half of the Cotton textile mills are located in Mumbai alone. It is, therefore, rightly called as ‘Cottonpolis’ of India. Sholapur, Kolhapur, Nagpur, Pune, Aurangabad and Jalgaon are other important centres in Maharashtra.

Gujarat, which ranks second in the production of cotton textiles, Ahmedabad is the major centre of the state. Surat, Bharuch, Vadodara, Bhavnagar and Rajkot are other centres in the state.

Tamil Nadu has emerged as an important producer of cotton textiles in southern states. Coimbatore is an important centre in the state. Tirunelveli, Chennai, Madurai, Tiruchirappalli, Salem and Thanjavur are other important centers here.

In Karnataka, cotton textile industry is concentrated at Bangalore, Mysore, Belgaum and Gulbarga. Kanpur, Etawah, Modinagar, Varanasi, and Hathras are important centres in Uttar Pradesh. In Madhya Pradesh this industry is concentrated at Indore and Gwalior. Howrah, Serampur and Murshidabad are important Cotton textile centres in West Bengal.

Rajasthan, Punjab, Haryana, and Andhra Pradesh are the other states producing cotton textiles.

The following are the factors for the localization of textile industry in AHMEDABAD–MUMBAI –PUNE REGION.

1. Availability of raw material – A large amount of cotton is grown in this belt.
2. Availability of capital – Mumbai, Ahmedabad and Pure are the places where capital for investment is easily available.
3. Means of transport – This region is well connected with the rest of India by roads and railways. It, therefore, facilities transportation of finished products.
4. Accessibility to the market – Maharashtra and Gujarat have a large market to sell textile products here. Developed means of transportation help in movement of textile products to other market centres as well as to foreign market. Now days the market has become a dominant factor in determining the location of cotton textile industry.
5. Nearness to ports – Mumbai port facilitates the import of machinery and good quality of cotton from abroad and export of the finished products.
6. Cheap labour – Cheap and skilled labour is easily available from the surrounding areas.
7. Availability of power – Cheap and sufficient power is easily available here.