Footloose Industries (Critical Analysis)

Footloose industry is a general term for an industry that can be placed and located in a wide variety of places. Footloose industries are seen as not tied to cost advantage from any particular location and so they can set up in any location. Furthermore, they are not dependent on any specific raw material, weight losing or otherwise. It can also easily relocate across boundaries in response to changing situation. Examples include diamond industry, computer chips production, mobile manufacturing, many other high technology industries  

Characteristics  :

• Their products have high value addition and are small in size. Transportation cost of the products is only a small fraction of the total cost 
• They employ a relatively small labour force as compared to traditional industries. 
• These are generally non-polluting industries. 
• The industries largely depend on component parts, which can be obtained anywhere. 
• It needs skilled workers as the industrial process is advanced and work requires high-quality precision such as the diamond cutting and polishing industry in Surat. 

Factors That Influence the Location  :

• Transportation facilities: An important factor in their location is accessibility by transportation network enabling the workers to commute hassle free. The extensive network of metro, railways and roads in the Delhi-NCR region has helped the growth of the service industry in Gurugram and Noida. 
• Economies of Cluster/Agglomeration: They are located close to similar industries to swap ideas and supply raw materials/finished products. For e.g aerospace industry around Bangalore. 
• Availability of cheap land: They are located on the edge of cities because of cheaper cost of land. For e.g. the development of software industry in the periphery of Delhi. 
• Easy access to workers: The computing and information technology industry are not tied to raw materials and can choose their own location. Software technology parks in cyber cities like Bangalore and Hyderabad, have a large workforce who can travel from cities as well as nearby suburban areas. They are also located close to research centres like universities. 
• Amenities for workers: Footloose industries are more likely to be located in places with a perceived high quality of life such as those with adequate healthcare, recreational and educational amenities, where productive workforce can be attracted. For e.g. development of Silicon Valley in California as a technology hub in the USA. 
• Close to residential areas: Footloose industries are usually non-polluting and thus, they can be located close to residential areas. 

Footloose industries can provide employment in areas that lack locational advantages such as access to weight losing raw materials like coal, iron ore, limestone etc. Impetus should be given for the development of the footloose industries in such areas to increase employment opportunities. Further, India could also gain a competitive advantage in high value goods in the global market.