Jute industry is situating in the eastern part of India. Major part subgrouping is highly localized in the West Bengal side and lies mainly in the region adjacent to the Hooghly River.
Raw Materials Location:

Raw jute is in ample measure in Alluvial plains of Ganga-Brahmaputra Delta in West Bengal, Bihar and Assam. This assists in reducing transport costs since most of these sources of raw material lie close by.

Plentiful Supply of Water:
There is enough water availability as the Hooghly River is supplemented by numbers of branches. At several stages of the raw jute processing like soaking, retting and washing, water is the raw material that is used mainly.

Cheap Labor
The location has abundant population that is cheap and skilled especially in sectors like the jute processing and weaving.

Developed Infrastructure

The availability of an extensive railway, road, and water transport system augments the transportation of raw material, finished products, and to and fro movement of personnel.
Established Market:

Kolkata, in specific has good developed harbour frontage hence a conducive location for export of the jute goods to the world market.

Challenges Faced by the Jute Industry in India:

Competition from Synthetic Substitutes:

Some of the raw material which are produced using jute are being challenged by synthetic substitutes such polypropylene and polyethylene on the basis of cost and what seem to be superior strength.

Declining Demand:

Originally the raw material was used for the production of jute bags and sacks; however, synthetic packaging material has eaten into the market share tremendously.
Technological Upgradation:

Majority of the jute mills situated in India today are technologically worn out and also, reveal low levels of production. Further, improved quality of the products to be produced by incorporating this concept in the argosy manufacturing company will be enhanced while at the same time facing higher production costs. The existence of modern machines and technology indicates that competitiveness to increase would mean upgrading.

Environmental Problem:

Hence the bulk of the pollution can be attributed to water pollution because of retting in jute processing, the necessity is then to adopt methods that are eco-friendly and introduce effective measures concerning pollution control. Diversification is not Enough:

Focused only on a few products, like a jute bag, it stands as a limitation for the trade, and the focus should be laid on new ones like geotextile, jute composites, and jute handicrafts.

Labor Problems

Low wages owing to extremely poor working condition and lack of basic social securities are the major issues faced by the industry with reference to laborers.