Which are the main factors which influence the location of an industry?

Answer: Setting up an industry leads to the development and growth of that location. The factors that affect the location of industries are the easy availability of raw materials and land, adequate supply of water and labour, access to power and transport, presence of markets and a good amount of capital. Sometimes, the government also provides incentives like subsidised power, lower transport cost and other infrastructural facilities. This is done to encourage industries to be established in economically backward areas.