(a) Reasons for industrial localization:
(i) Availability of infrastructural facilities: The presence of electricity, pipe borne water, telephone, etc. also contributes to industrial localization.
(ii) Nearness to raw materials: This is a dominant factor in the location of an industry, especially that industry which uses bulky raw material that is expensive to transport and looses weight in the manufacturing process.
(iii) Availability of finance/capital: This is the live wire of every industry. Industries are located in areas where there is access to banking and financial facilities. Such areas attract more industries:
(iv) Nearness to markets: An entrepreneur has to consider the market potentialities of his/her product. Nearness to markets will reduce the cost of transporting products to the markets.
(v) Availability of adequate and trained labour: Industries tend to be concentrated in those areas where adequate supplies of trained labour are available.
(vi) Nearness to sources of power: There should be enough, ready and dependable sources of power. This will help the operation of the industry.
(vii) Adequate transport network: This is highly essential to move raw materials to industrial sites, and to move the finished goods to the markets or areas of consumption.
(viii) Political stability: This enhances industrial growth and attracts foreign investments.

(b) Benefits of establishing manufacturing industries in rural areas:
(i) Development of rural areas: It helps in developing the rural areas.
(ii) Discouragement of rural-urban migration: Rural-urban migration is discouraged.
(iii) Provision of employment to skilled and unskilled labour: It leads to employment of skilled and unskilled labour.
(iv) Increased production of goods: It brings about an increase in the production of goods because of being close to raw materials, e.g. producers of beverages such as Bournvita, Milo, etc.
(v) Increased earnings for rural people: People in rural areas can experience in their earnings.
(vi) Encouragement of urban-rural migration: It also encourages urban-rural migration, thereby reducing the rate of crimes in urban areas.