Economics

Importance of Transport & Communication – 19 Headings

Discuss the Importance of Transport and Communication. Discuss the Role of Transport and Communication Sectors to the Economic Development.

Importance of Transport & Communication

Rail, road, air, and ships are included in the transport sources. While postal, telephone, telegraph, radio, and T.V included in the communication sources. Moreover, in this digital era, social media networks like Whatsapp, Twitter, etc, and Messaging applications like Whatsapp, Messenger, etc are also sources of communication. These sources play a very effective role in the economic development of any economy.

The importance and role of transport and communication can be judged by the following facts:-

FOP’s Mobility

If the sources of transport and communication are improved, quick, and cheap, they will increase the mobility of factors of production in the economy. The reward of all the factors of production will become equal.

Stability of Prices

The organized and developed system of transport and communication helps in stabilizing the prices of goods and services throughout the country.

Raw Material’s Supply

Due to the quick and low-priced transport system, the raw material can be easily supplied to factories at a lower cost. Even from outside the country, it can reach in time.

Supply of Manufactured Goods

From the factories, goods can easily be transported to the consumer markets if the transport is efficient.

Use of Natural Sources (Land)

To use the idle resources of the economy, the transport sector plays a vital role and the production can be increased with the development of road infrastructure and communication. Minerals like coal, gas, and oil can be easily explored.

Importance of Transport & Communication
Importance of Transport & Communication

Markets Extension

If the sources of transport and communication are low-cost and fast, then goods and services can be easily carried out too long distances. Moreover, the size of the markets will also be expanded. In this era, the domestic and international market has been expanded due to the modern transport system.

Specialization

The process of specialization in different areas can be adopted if the transport and communication system is developed. This will result in a reduction in the cost of production.

Trade Stimulation

The cheapest and quick means of transport and communication stimulate trade inside and outside the economy.

Agricultural Development

The importance of transport and communication cannot be ignored in agricultural development. Due to the developed transport and communication system, fertilizers and seeds can be provided in time to the farmers. It will definitely increase the production of the agriculture sector.

Industrial Development

The importance of transport and communication also cannot be ignored in industrial development. The machine and raw material can be imported from other countries for the industrial sector if our means of transport and communication are fast and cheap. Expert services can also be hired.

In Emergencies

In case of food shortage, we can import the food from other countries and this will emphasize the importance of transport and communication, especially in case of floods and storms.

Increase in Employment

Transport and Communication sectors are providing employment to a large number of people and with the development with these sectors, we can reduce the rate of unemployment.

Increase in National Income

Giving due importance to transport and communication can increase the national income of the economy.

Increase in Literacy Rate

The importance of transport and communication can also be seen in the education sector. Better communication can increase the literacy rate like online classes etc. Better transport can also increase the school attendance rate.

Improves the Sense of Brotherhood

Improved transport and communication system has developed a sense of unity and brotherhood. Today, every person can move from one place to another easily.

Increase in Social Welfare

Due to the developed system of transport and communication, we can provide the basic needs of life to the poor nations.

Strong Defence

A well-developed transport and communication system enables the government to defend the country on sound footing.

Maintenance of Peace

It is the duty of the government that it should maintain peace in the country. Without the developed system of transport and communication, it cannot restore peace.

Political Awareness

The importance of transport and communication can be seen in creating political awareness. Politicians are now in a better position to know their economic and social problems. They can also cooperate to solve these problems.

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