The jute industries are majorly located in eastern region of the country. About 25% of the workforce are enrolled in the jute industry. 80% of the industries are in West Bengal only. The reasons for the high concentration of Jute Industries are as follows:
- Soil: The alluvial conditions of Eastern Bengal offer ideal environment for jute cultivation. Thus, availability of raw jute makes jute textile manufacturing the most prominent industry in the state.
- Transportation: Inexpensive water transport supported by a good network of railways, roadways and waterways facilitates movement of raw materials, finished products and mill equipments to the mills.
- Water availability: The industry requires huge amount of water for processing jute, which is
provided by the Hooghly river.
- Cheap labour: The jute industry is labour intensive. The labour is abundantly present in the region and adjoining areas of Bihar and Odisha.
- Energy: Iron and coal which are required for the installation and running of jute factories are also available from the nearby mines of Raniganj.
- Geographical Location: Bangladesh is another major grower of Jute. The jute mills in Bengal get abundant local and imported supply from Bangladesh.
- Market: Kolkata as a large urban centre provides banking, insurance and port facilities for export of jute goods.