Role or Importance of transportation in the economic development of Nepal

Transportation:

Transportation is the process of carrying people and goods from a place to another. Transportation is one of the major prerequisites of economic development. Several goods need to be transferred from a place to another for the fulfillment of daily needs or industrial needs. Similarly, import and export of commodities, capital, and manpower are possible only due to transportation facilities.

For the transfer of factors of production from a place to another, there is the need for transportation. Furthermore, the finished goods need to be transferred to the market (local, national and international) for their sale/ trade which is possible due to transportation. Thus, transportation is the infrastructure of development that promotes efficient mobility of the factors and output.

Role or Importance of transportation in the economic development of Nepal:

1. Equitable Distribution of National Output: Nepal is a mountainous country and due to its geographical disadvantage the production of one region is not properly distributed to other parts of the country. However, a suitable transport facility helps to distribute National Product in the best possible manner.

2. Market Expansion: The domestic market in the Nepalese economy is confined to some limited places due to the lack of appropriate transportation facilities. However, if different potential places of Nepal are properly connected then the product of one region can easily be sold in other regions. It helps to promote market expansion.

3. Tourism Development: Nepal is known for its natural beauty all over the world. If all the tourist places are linked with transportation facility then tourism development will be promoted in Nepal.

4. Increase in Domestic and Foreign Trade: The commercial product from one part of the country can easily be exported to various domestic markets as well as foreign markets through the availability of a dependable transportation facility.

5. Mobility in Lifestyle: If different regions of the country are well connected with suitable transportation facility then people from one part of the country can go to other parts of the country quite easily and effectively. It will transfer mobility in the lifestyle of common people.

6. Agricultural and Industrial Development: Through transportation facility different agricultural and industrial inputs can be carried upto agricultural and industrial estates for production. Such a situation helps to promote agricultural and industrial development.

7. Sustainable Economic Development: Appropriate transportation facility helps to create an equitable distribution of national output, promotes tourism, agricultural and industrial development. All these components through transportation facilities help to create and maintain sustainable economic development.