Introduction to economic growth & development
In an economy, an outward move in its PPC (Production Possibility Curve) represents the economic growth. It can also be defined as the rise in a country’s total output or GDP (Gross Domestic Product). In simple words, it is the increase in a country’s production.
The economic development of a country is generally demonstrated by the improvement in residents’ quality of life which is usually measured by using the Human Development Index. This type of index is a financial model that contemplates intrinsic personal features which are not considered in the economic growth like life expectancy rates, poverty rates, and literacy rates.
Vital factors affecting the economic growth in a country:
- Standard of education and labor efficiency. The productivity of the workforce can demonstrate the basic levels of education and literacy.
- Levels of infrastructure such as transport and communication can affect economic growth of a country.
- What tax rates percentage are actually collected from the public and spent on services to people of the country.
- Investments on the raw material which other countries can export. For instance, China has invested in different countries in Africa to get raw materials that its economy requires.
- The savings and investment are also important factors. Greater savings can fund more investment which boosts economic growth.
- The mobility of labor. Is labor able to shift from comparatively unproductive agriculture to more fruitful manufacturing?
- The flow of foreign support and investment. This can aid to improve infrastructure as well as the living standards of people of the country.
The role of transport in economic development
Transport infrastructure is one of the key factors on which country’s growth depends. The transport system is seen as the controller of the country’s economy and offers a vital link between production and consumption. The amount of traffic moving on the roads of the country can demonstrate its progress. The current transport system in India includes different modes such as rail, air, road, and coastal shipping. Over the years, the transport has recorded a considerable growth in India both in terms of distance as well as the output of the system.
When the transportation developments increase the accessibility of public and businesses to reach the jobs, goods, services and activities, the productivity also increases. This rise may be due to transport infrastructure enhancements and decreased travel time. As the labor market temporarily is brought closer to their workplaces because of improved travel time, companies experience improvements in worker’s productivity.
Although India has a huge and diverse transport industry with its own challenges, they are shifting to implement more and more energy-efficient technologies and customer-centric approach. It won’t be wrong if we call it the ‘lifeline’ of a nation.
Impacts of Transportation on areas like:
Transportation And Agriculture
The Indian economy is mainly agronomic in nature. Irrespective of the rapid development in other sectors, agriculture, and related sectors still are the important sector contributing towards the Gross Domestic Production of the nation. Transport is considered one of the crucial factors in boosting agricultural productivity. It not only improves the quality of life of people but also builds a market for agrarian produce. Transportation facilitates the connection between topographical and economic regions and creates new areas to commercial focus.
Rural roads connectivity is one regarded as the major components for rural development because it improves the access to social and economic services. Better transportation services generate improved agricultural income as well as fruitful employment. Access to the roads offer the means to bring the population in the rural areas to the mainstream. A planned network of roads helps to minimize the transport cost, boost the delivery of farming material and improves special agricultural production as well as distribution.
Moreover, a good road network promotes the distribution of agrarian goods and creates additional opportunities for the agricultural sector. Good transport infrastructure results in the development of markets and market operations. With better transportation infrastructure, it will be easier to provide inputs to workers in the farms as well as products to markets which will contribute to the growth of the agro-allied industry. Improved transportation inspires farmers to work harder to increase their production, get value products, minimize the spoilage, and wastage. Hence, if the transportation services in the rural area are good, it will greatly impact the farmers’ productivity, employment, income and also decreases the poverty.
Transport And Industries
The warehousing and transportation industry include sectors like cargo transportation, warehousing and storage for goods, providing transportation of passengers. These industries make the use transportation-related facilities and transportation equipment as their fruitful asset. The industries which have no or poor access to rail tracks, the road transport supports them by improving their supply chain.
The road transport industry is undeniably helpful in connecting all businesses and industries to all major world markets. It helps in generating employment and guaranteeing a better dispersal of wealth. For improved growth in the economy, the transport investments are essential. It is not only facilitating inexpensive and more efficient movements of goods and people but also affects the delivery of commercial activity across the cities.
The industries whose product needs quick marketing, transport is considered the best support. Fresh food items such as green vegetables, fruits, and fish are supplied to various clients quickly even in distant markets using transport. With the help of fast transportation newer clients in newer places can be easily approached and the products can be provided to them. Thus, we can say that transportation playing a significant role in national as well as international markets.
Transport And Education
The road transport sector is the backbone of huge economies and dynamic communities. It plays a significant role in enabling the students in rural areas to reach the schools for higher education. There was the time when no reliable transport system was available for the students in the rural areas. Due to the poor road network, it was the biggest challenge to continue education. Sometimes they faced inconvenience by traveling to their schools in overpacked public transports.
Lack of transportation means less dispersal, it becomes the source of both economic and cultural isolation, parting different cities with isolated schools. If the students can’t reach the school on time and safely, they can’t learn. Every school should have their transportation facility. It’s the largest mass transit system in the nation.
Many schools spend a significant percentage of their budget on transportation facilities, and this is providing the students with safety and convenience to reach school or institution on time. Expenses per school bus ride have increased more than 75 percent per pupil since 1980. Depending on U.S. Census school expenditure data, on average, the districts spend around 4-5% of their operating costs on transportation, but it is not uncommon to observe much higher allocations.
Benefits of road transport
There are huge benefits of road transport as compare to the other mode of transport. Have a look-
The door to door delivery: This is the top advantage of road transport. Road transport helps to deliver consignments at your doorsteps. This saves you money by reducing the cartage, loading and unloading of the goods.
Require less capital: Road transport needs much less capital Investment than the others modes of transport like air transport, rail etc. The roads are constructed and maintained at cheaper prices as compared to other transport modes. Generally, the roads are built by the government and local establishments and only a slight revenue is charged for using the roads.
Best for rural areas: In rural areas, road transport is the best option for carrying goods and people to and from. Rural areas have no access to rail tracks and air transport modes. Thus, road transport is the suited option for supply of the goods at such places.
Flexible service: Road transport offers the flexibility which is a greater advantage over other modes of transport. The timings and routes can be adjusted or modified depending on the individual requirements.
Highly suitable for a short distance: When it comes to carrying people as well as goods over a short distance, road transport is considered as the best option. It is faster and quite affordable. Goods or consignments can be loaded directly into the vehicle and shipped straight to the destination.
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TruckGuru understands that every client is unique and thus, their requirements are also unique. Our consulting team listens to your requirements and come up with a most effective, quick and affordable transport solution. Our professionals aid patrons to stay ahead of the tough competition by working with them on their complex problems around digital transformation, strategic growth, organizational effectiveness and operational improvement. Thus, TruckGuru is the best transport services provider in the town.