The correct option is 1 only
Explanation
The location of industries is determined by a complex interplay of geographical and economic factors, including the availability of raw materials, labour, capital, power, and market access. The primary objective in selecting a location is typically the minimization of production costs and the maximization of efficiency.
Statement-wise Analysis:
- Statement 1 is Correct: Labour is a fundamental factor of production. The availability of labour-whether cheap for labour-intensive industries (like textiles) or specialized for technical industries-significantly influences where a manufacturing unit is established. Proximity to a suitable workforce reduces costs and ensures operational stability.
- Statement 2 is Incorrect: High-technology industries are defined by their reliance on advanced scientific knowledge, research and development (R&D), and innovation. These industries are highly sensitive to the availability of skilled labour, scientists, and engineers. Consequently, they tend to cluster near educational institutions and research hubs (e.g., Silicon Valley) rather than being indifferent to the workforce's skill level.
Key Takeaway:
Labour availability is a critical determinant for industrial location; specifically, high-technology industries are heavily dependent on the proximity to highly skilled and specialized human capital.