The following points highlight the top seven roles of transport system in economic development of India. The roles are: 1. Movement of Inputs and Outputs 2. Labour Mobility 3. Facilitates Specialization 4. Extension and Perfection of Markets 5. Opening Lip Remote and Inaccessible Regions and Others.   

Role # 1. Movement of Inputs and Outputs:

Transport systems in India facilitates the movements of different inputs like raw materials, fuels, machineries etc. for the smooth functioning of the entire production system of the country. Similarly, outputs of various sectors are carried smoothly from one place to another for bringing them into the market.

Thus the transport system of India is providing valuable services for raising the volume of production of various sectors of the country.

Role # 2. Labour Mobility:

Transport system in India has increased the mobility of labour between different regions of the country. Mobility of labour is equally important for both expansion of industry as well as for improving the lot of workers. Transport system is opening up gainful employment opportunities to unemployed and under-employed labourers of the country.

Role # 3. Facilitates Specialization:


The transport system in India is facilitating clear-cut geographical specialisation in respect of production. As specialisation depends on the extent of the market thus by developing markets for various products in distant areas of the country transport system facilitates specialisation.

Role # 4. Extension and Perfection of Markets:

Transport system in India is extending the size of market of various products of the country to distant areas and removes all market imperfections smoothly and efficiently. Thus by establishing a link between production centres, distribution centres and ultimate consumers, the transport system extends the size of market for various products produced in the country.

Role # 5. Opening Lip Remote and Inaccessible Regions:

Roads and railways are opening up various remote and inaccessible regions of the country and makes way for tapping vast unexplored resources like minerals, forest and agricultural wealth of the country.

Role # 6. Direct Demand for Industrial Goods:

The transport system of the country is creating direct demand for various industrial goods like machinery, iron and steel product etc. and thus stimulating economic development of the country.

Role # 7. Widening Outlook of the People:


The transport system of the country is playing an important role in widening the outlook of the people of the country. It enriches social, cultural and political outlook of our people. It also removes conservative attitudes, superstition and ignorance of our people and thus widens the general outlook of the people of the country.

Thus transport and communication system in India is playing a very important role towards economic development of the country.

The system is so important that about 20 lakh persons are directly employed in this transport and communication system and this sector is contributing a considerable portion of the GDP of the country. Considering its importance a sizeable portion of the plan resources of the country has continuously been allocated in successive plans for the all-round development of transport and communication system of the country.