Multiple Choice Questions on Which of the following industries of India is a footloose industry ........ for UPSC Civil Services Examination (General Studies) Preparation

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Indian Economy - Understanding the basics of Indian economic system

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    Which of the following industries of India is a footloose industry?

    Iron & Steel Industry   

    Incorrect Answer

    Aluminium manufacturing

    Incorrect Answer

    Diamond cutting and polishing

    Correct Answer

    Sugar Industry

    Incorrect Answer
    Explanation:

    Footloose industry is a general term for an industry that can be placed and located at any location without effect from factors such as resources or transport.
    These industries often have spatially fixed costs, which mean that the costs of the products do not change despite where the product is assembled. Diamonds and computer chips are some examples of footloose industries.
    Industries like Iron & steel, Sugar, Aluminium manufacturing etc. make use of weight losing/gross raw materials and are located near the source of these materials. Other factors like availability of power, transport, market etc. also influence industrial location. For e.g.- Aluminium and Synthetic nitrogen manufacturing units require huge amounts of power and are hence located near power sources.






     


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