Spatial distribution as well as type of industry much depends on its location. Manufacturing is a secondary process of transforming raw materials into finished products. The manufactured goods are more useful and valuable than the raw material. The location of manufacturing industries depends on a number, of physical and socio-economic factors.
(1) Nearness of raw materials : Large quantities of raw materials are needed for industries. Therefore, industries are located near the source of raw materials. It saves the cost of transportation. Steel centers are developed where coal and iron are easily available. Jute mills in West Bengal and cotton textile mills in Maharashtra are located due to the availability of the raw materials.
(2) Power resources : Coal, oil and water-power are the main sources of power. Most of the industries are located around coal-fields. Aluminium industries and paper industries are located near hydro-electric stations.
(3) Means of transportation: Modern industries need cheap, developed and quick means of transportation. Cheap means of transportation are required for the movement of workers, raw materials and machinery to the factories and to the market.
(4) Climate : Stimulating climate increases the efficiency of the labourers. Cotton textile industry requires humid climate. Film industry needs good weather with clear blue skies. Aircraft industry needs clear weather.
(5) Skilled labour: Cheap and skilled labour is essential for the location of the industries. Glass industry at Ferozabad, sports goods industry at Jalandhar are located due to the availability of skilled labour.
(6) Nearness to market: Industries are located near the market for their manufactured goods. Urban and industrial centres with dense population provide a large market.
(7) Early start: Momentum of an early start leads to the location of an industry such as cotton textiles at Mumbai.
(8) Defence : Some industries are located with a military motive such as air craft industry at Bangalore.