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The factors that influence the location of industries are:

1. Availability of Water

2. Availability of Power : Nearness to source of power or availability of power supply in an area will reduce the cost of production.In other words, this will fetch a higher income for a company as the money would be saved for the production of other goods or payment of employee salary.

3. Availability of Labor : Efficiency of labor is an important factor affecting location of industry. A higher labor force will improve production process for goods with elastic effect will create revenue.In other hand, diminishing return will be applied if more or more labor for industry.

4. Local government policies : Government policies might influence the location of industry. A favorable government policy will improve the location of industry as funds and other forms of incentives will be given to industry for the purchase of raw materials. This will help in the development of technology that will improve production of goods .

5. availability of infrastructure : Infrastructural facilities like water, good and available transport system are provide for the location of industry.

6.availability of raw materials,capital,transport and market

7.incentives (e.g, importation of machinery from Europe )

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