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As a result of the policy, businesses preferred setting up industrial locations closer to the coastal trade Indian states like Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Andhra Pradesh and markets in the cities like Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Ahmedabad, and Pune.
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The freight equalisation concept made "essential" items available at relatively constant prices throughout the country. These items included coal, steel, and cement, among many others. The idea was to promote balanced regional development of industries throughout the country, but it developed few coastal states like Maharashtra, Tamil Nadu, and Gujarat.[3]
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