A Study of Maharashtra and Gujarat Jyotsna Paranjape Since the early seventies, greater emphasis has been given to the objective of balanced regional development in industrial policy. Certain areas have been identified as industrially backward and special schemes have been formulated to induce the development of industry there. Direct government intervention is a necessary condition for diverting industry from industrially developed areas to industrially backward regions. However, factors which are likely to be equally important in decisions on industrial location are the availability of transport, communications, water, power, social amenities and other services. The formulation of an effective industrial location policy requires an understanding of the factors inducing location in industrially backward regions. This paper is an attempt to analyse 'such factors in the case of Maharashtra and Gujarat.
