Posted in Finance, Accounting and Economics Terms, Total Reads: 84
Definition: Industrial Park
Industrial park is the area specifically kept for the purpose of industries, manufacturing units & factories. Industrial park can also be called as industrial estate or trading estate. Industrial parks include many industries and normally are responsible for employing a large number of people.
There are various areas in a city like residential area which has houses for people to live, then there is commercial area which profit business such as shops, shopping malls etc. Similarly, industrial parks are dedicated business zones for industries to do their business.
Benefits of industrial parks
• Industrial parks are set up for the benefits of the development for the industry.
• They are usually located outside the cities because of the safety as well as area purposes.
• These industrial parks provide sufficient infrastructure that attracts more business and investment
• These parks also provide opportunities for the companies to come together and use economies of scale and set up an environment where these companies can support each other
With benefits there are also certain disadvantages attached to industrial parks like
• With the increase in the number of industries the area becomes small and leads to overcrowding
• Industrial parks also add to environmental issues.
• With upcoming of industries cities and towns have faced issues of basic necessaries such as water, electricity etc. with this they also suffer from high amount of traffic and dwelling of new migrating population.
With keeping in mind all the benefits and the disadvantages a new concept of industrial park can be seen developing that is eco-industrial park (EIP).
An Eco- industrial park is a new type of industrial park where the industries within themselves and the industries and the society try to cooperate with each other in order to reduce environment issues and share resources. Eco-Industrial parks is a new concept which try to overcome the disadvantages.