This is a deliberate policy aimed at redistributing firms from where they are concentrated to different regions of the country.

Advantages of delocalization are:

It is one major step towards achieving balanced economic growth in the country. Two, it helps to redistribute income there by reducing high levels of income inequality. Three, delocalistion  may help in preventing the over exploitation of resources in a particular area. Four, it helps in redistributing  employment opportunities to people in different parts of the country. Five, it helps to reduce rural urban migration with its negative consequences.

Increases government revenue as more industries are established country wide and hence more taxes raised. Delocalisation is necessary for mobilizing political support from different corners of the country. It reduces the risks that face firms which are concentrated in one area e.g. fires, wars etc.