The correct option is 2 only
Explanation
The manufacturing sector is considered the backbone of economic development. It plays a pivotal role in modernizing agriculture and shifting the workforce from the primary sector to the secondary and tertiary sectors. The location of industries is determined by a complex interplay of geographical and non-geographical factors.
Statement 1 is Incorrect:
Industrial development is a precondition for the eradication of unemployment and poverty. A key objective of public sector industries and joint sector ventures in India has been to bring down regional disparities by establishing industries in tribal and backward areas. By providing employment and infrastructure in these regions, manufacturing industries contribute significantly to balanced regional growth.
Statement 2 is Correct:
Industrial location is not influenced by raw material availability alone. It is determined by the availability of multiple factors, including labour, capital, power, market, transport, and government policies. It is rarely possible to find all these factors in one place; therefore, industries are located where these factors are either available or can be arranged at a lower cost. For example, footloose industries are less dependent on specific raw materials and more on component parts and accessibility.
Key Takeaway:
Manufacturing industries are essential for reducing regional economic disparities, and their location is governed by the least cost principle, considering factors such as raw materials, labour, markets, and power supply.