| dc.description.abstract | The article examines four hypotheses about the location
of the Indian cement industry: a) its location is not
optimum, b) it is not evenly distributed throughout the
country, c) it is becoming more and more dispersed over
time, and d) recent changes are towards optimum location.
These hypotheses are tested on the basis of various
determinants of location and on two measures of location
— location quotient and coefficient of localization. The
findings endorse all the four hypotheses. In particular, the
location coefficient has declined from 0.53 in 1960 to
0.46 in 1965. Madras and Bihar were the leading states
in cement production in 1947, but in 1971 leading states
were Madras, Madhya Pradesh, Gujarat, and so on. This
change seems to have been effected by market forces,
such as profitability. The government could perhaps
expedite this process through measures such as a suitable
licencing policy and tax incentives. | |
