Cities play a vital role in promoting economic growth and prosperity of a nation. The
development of cities largely depends upon their physical, social and institutional
infrastructure. Transport demand in most Indian cities has increased substantially, due to
increases in population as a result of both natural increase and migration from rural areas and
smaller towns. Urban productivity is highly dependent on the efficiency of its transport system
to move labour, consumers and freight between multiple origins and destinations. The primary
function of transportation is the transfer of messages and information. It is also needed for rapid
movement of troops in case of emergency and finally movement of persons and goods. The political decision of construction and maintenance of roads has resulted in the development of
transportation system. The entire economic, social and political life of a modern country
depends upon an efficient system of transport. The benefits of transport can be studied under
the following categories.
I) Economic Benefits/Functions
The economic effects of good transport facilities are as follows.
1) Extensive Market
Transport helps in the assembly of raw materials and distribution of finished goods. It makes
it possible to move goods from the place of production to the place where they are to be
consumed. In the earlier days, there were only local markets due to the absence of safe means
of transport. Now a days, trade is not restricted to the boundaries of a nation, but has spread
throughout the world.
Development of the efficient means of transport has knit together all the nations of the world
into the one big world market. Even the perishable articles like fish, dairy products, meat etc.
are being transported to distant places of the world. But for good transport facilities, such a
development in trade and commerce would not have been possible.
2) Mobility of Labour and Capital
Transport reduces the rigours of immobility of certain factors of production. Mobility of labour
and capital increases with the development of transport. An efficient network of transport
services encourages the movement of people from one place to another.
Labour can migrate to the place where they can get better job opportunities, which reduces the
exploitation of workers. The development of Australia and United States would not have been
possible without immigrations from Europe. With the development of transport, the investment
of capital is also channelized to new lands and other places of the world.
3) Specialization and Division of Labour
Transport helps each region and country to make optimum and efficient use of its national
resources. Each region can concentrate on production of those goods for which its resources
are best suited. Thus, movement of goods and people from one place to another leads to
specialization and division of labour which results in minimum wastage of resources and
reduction in the cost of production.
4) Economies of Large Scale Production
Transport has helped the development of large scale industries. It would not have been possible
for these industries to procure raw materials, gather large number of workers and sell the
finished goods, without the efficient facilities of transport. Thus, transport has made possible
the various economies of large scale production which tend to reduce unit cost of production
and help the economy.
5) Stability in Prices
Transport facilities iron out wild fluctuations. Goods can be transported to places where there
is scarcity and the prices are high from places where there is surplus and the prices are low.
Such movement of goods helps in maintaining uniform prices throughout the country and
further tends to equalize the prices of goods throughout the world.
6) Benefits to Consumers
Improved means of transport benefit the consumers in many ways. The consumers can enjoy
the benefit of use of many goods, which cannot be produced at their place, by transporting such
goods from other distant places. Further, it helps in reducing the cost of goods of consumers
and increases their purchasing power.
7) Employment Opportunities and Increase in the National Income
The various means of transport provide employment to millions of people throughout the
world. The economic development of a country depends upon the improved means of transport.
Thus, transport contributes substantially to the national income of the nations.
8) Discouragement to Monopoly
The scope of total income is extended by the development of the means of transport. As
commodities can be quickly transported from one place to another, local producers cannot
charge prices at their own will. This discourages monopoly and encourages competition.
9) Development of Agriculture
Transport has helped in the development of agriculture also. The business of agricultural
products has grown to such a large extent only do to the efficient means of transport. It would
not have been possible to use modern techniques of agriculture, improved quality of seeds and
fertilizers, etc., but for good transport facilities.
10) Industrial Development
Transport facilitates the industrial development of a country. It helps the growth of industries
by making available various factors of production. It would not have been possible to make
such rapid industrial development without efficient means of transport.
11) Increase in National Wealth
Transport helps in increasing the national wealth of a country by facilitating agriculture,
industry, trade and commerce.
II) Social Benefits/Functions
Transport has substantially influenced the life of the people. The various social advantages of
an efficient transport are as follows.
1) Discovery of New Lands
Transport has helped the discovery of new lands and the growth of cities and urban areas. Due
to the availability of long distance cheap transport, land has been utilized to the maximum
advantage of the people all over the world. Even the waste lands are now being used. It also
increases the value of land.
2) Diffusion of population
It reduces the concentration of population in the area of production. People can reach from
distant places if there is an adequate and efficient system of transport.
3) High Standard of Living
Transport helps in the increase of production thereby raising the standard of living of the
people. It is possible only through the means of transport that the ‘five M’s - Men, Material,
Money, Machinery and Management’ can be assembled at the place of production. So,
industries depend upon efficient system of transport and it creates new industries.
4) Mutual Understanding
It removes the problem of distance, helps the people of different regions to come in contact
with each other, encourages exchange of ideas and culture and promotes co-operation,
understanding the cordial relations, amongst the people of the world.
5) Ability to Face Natural Calamities
Transport enables the society to face natural calamities such as famine, earthquake, drought,
floods, etc. In such emergencies, commodities can quickly be transported to the places of
mishap.
6) Broadens the Outlook of the People
Transport promotes mutual understanding. It has broadened the outlook of the people of the
world and has knitted together all the nations of the world.
7) Destroys Ignorance
It promotes culture, removes prejudices and destroys ignorance. It helps in spreading
knowledge and furthering the cause of education.
III) Political Benefits/Functions
In addition to the economic and social advantages, transport enjoys a great political
significance.
1) National Unity, Integration and Peace
Transport helps in maintaining internal peace and national unity of a country. It brings about
national integration. A vast country like India cannot be held together without efficient means
of transport. Transport encourages economic and political interdependence by promoting
specialization and division of labour and this strengthens the need for unity and national
integration.
2) National Defense
Transport is essential for strengthening the national defense of a country. In the days of war, it
is only through improved means of transport that the defense personnel, material and
equipment can be moved rapidly to the border areas. Defense of a country, therefore,
necessitates the existence of improved transport facilities.
3) Political Awakening
Efficient means of transport help in creating political awakening in the people and the growth
of civilization.
4) Source of Revenue
Transport helps in increasing the national wealth and income of a country. It is also a source
of revenue to the Government.