The following are the factors responsible for the location of Jute industry in the Hugli basin:
1. Proximity to the jute producing areas, jute is abundantly grown in the adjoining regions of West Bengal, Bihar and Assam.
2. Hugli river provides for inexpensive water transport and also for washing jute and jute related goods.
3. There is good network of railways, roadways and waterways to facilitate movements of raw materials and labor to the mills.
4. There is an abundant water supply for processing raw jute.
5. Cheap labor is available from west Bengal and adjoining states of Bihar, Orissa.
6. Capital facilities are available from the local capitalist.
7. Cheap and adequate hydel power is obtained from DVC in Bihar and West Bengal.
8. Kolkata provides market and port facilities to the Industry.