Three fundamental geographical factors that determine a viable site for setting up an industry are
1. Raw material: Proximity to the area producing raw material is a prime requisite foe setting up an industry. For example, the iron and steel plants are concentrated in Jharkhand because this region is endowed in all the raw material (iron-ore, manganese, limestone and coal) which is used to produce steel.
2. Power supply: Power is required for any industry in order to run machines which process the raw material into finished products. This is why industries are located near Jamshedpur and Kolkata where cheap labour is available from the Damodar Valley Project.
3. Water: Although water is required for all the industries, it is particularly important for certain industries like the jute, food and chemical industries. The jute industry in West Bengal is very much benefited due to the availability of soft, running water in the Ganga-Brahmaputra Delta.
