Iron and steel industries in India have shifted away from raw material sources due to various factors.
- Proximity to markets: Industries move closer to consumer markets. For example, Tata Steel in Jamshedpur is near mineral-rich regions and major cities.
- Availability of skilled labor: Access to skilled workers influences industry location, with urban areas and industrial hubs providing a larger pool for efficiency.
- Infrastructure and transportation facilities: Efficient transportation is crucial. Proximity to ports, railways, and road networks reduces costs. For instance, Essar Steel in Hazira benefits from a coastal location.
- Government policies and incentives: Tax breaks, subsidies, and SEZs attract industries to specific locations.
- Access to energy resources: Energy-intensive industries require reliable power sources, influencing location decisions.
- Environmental regulations: Stringent regulations impact industry location. Plants may choose regions with lenient rules to reduce compliance costs.
Thus the location of iron and steel industries in India is influenced by market proximity, skilled labor, infrastructure, government policies, energy resources, and environmental regulations. These factors shape the industry’s distribution across the country.