Land is considered the primary factor of production. Land is rich in coal, water and petroleum, which are used for generating power. Land is required to construct factories and industries to carry out the production process. Land is of great importance to mankind. A nation’s economic wealth is directly related to the richness of its natural resources.
In spite of rich natural resources, a country may remain economically backward due to some unfavorable factors on account of which the natural sources are either underutilized or not utilized. On the other hand, if a country does not have rich natural resources, it is comparatively much more difficult to make it prosperous.
The quality and the quantity of agricultural wealth of a country depend on the type of soil, climate, rainfall and water resources. The industrial progress and prosperity of a nation depends on mineral resources. The presence of rich coal mines, waterfalls or petroleum wells directly help in the generation of electric power, which is a key factor for industrial development.
The localization of industries invariably depends on proximity of power and raw materials. All these basic elements are provided by nature.
An example can emphasize the importance of land. In recent past, in spite of having enough capital, labor and efficient organization, TATA Motors were unable to start their Nano car project at Singur, West Bengal, due to the dispute over land possession.
In short, the importance of land is evident from the following points:
1. Land determines agricultural production.
2. The industrial progress and prosperity of a country depends on availability of mineral resources, i.e., land.
3. Land determines total production of a country.
4. Land influences the economic growth of a country.
5. Land maintains ecological balance.
6. Land directly or indirectly fulfills the basic needs of the people.
7. Trade is influenced by land.
Therefore, all economic aspects, i.e., agriculture, industry and trade are influenced by natural resources, referred by economists as ‘Land’.