Hseb Notes - Economics XI - Transport and Communication

Role of transport and communication in economic development:

            Transport and communication are pre-requisite (essential factors) for overall development of the country. These are considered as the basic infrastructures for economic development. The role of transport and communication in economic development are as follows:

  1. Basis of Agricultural development:

The development of transport and communication helps to develop and modernize agriculture sector. The modern agricultural inputs like chemical fertilizer, seed, machines, equipments, etc. can be supplied to farmers cheaply and adequately by transport and communication. They also facilitate the farmers in marketing of agricultural products as well.


  1. Basis of industrial development:

The development of industries also needs adequate transport and communication facilities. Due to lack of such facilities, the industries have been concentrated in few urban areas in Nepal. Thus, efficient flow of inputs and outputs is the basic pre-requisite of industrial development.

  1. Basis of Tourism Development:

Development of tourism is impossible without efficient transport and communication system. Tourists require transport and communication facilities to travel to various parts of the country. Tourism in Nepal is limited to only a few places due to lack of transport and communication facilities.

  1. Utilization of natural resources:

Nepal is rich in natural resources like water, forest and mineral. Thus, in order to utilize these resources we need adequate transport and communication facilities.

  1. Effective administration:

The transport and communication and facilities is also essential for effective administration. The peace, law and order can be maintained through transport and communication facilities.

  1. National unity:

The transport and communication facilities are essential for national unity. This increases the contact between the people of different places. They also help to exchange views. The people become well-informed about the socio-political activities of the countries.

  1. Expansion of market:

Market expansion is also pre-requisite for economic development. The development of transport and communication helps to develop market. It helps to develop goods and services from one place to another.

Means of Transportation:

            Transportation is an important physical infrastructures. It plays an important role in economic development of a country. Its development directly influences the development of agriculture, industry, trade, education and health sectors. The means of transport in Nepal are road, trolley bus, ropeway, railways and airways.

  1. Road transport:

The road transport is the major means of transport in Nepal due to country’s geographical position, economic situation and lack of fuel.

  1. Trolly bus:

There is greater prospect for the development of trolly bus services in Nepal. The trolly bus service was established in Nepal in 2032 BS under Chinese assistance but this servive is not providing transport facility due to lack of electricity.

  1. Railway:

Due to mountainous topography there is less scope of railway service in Nepal. At present, these service is limited to Terai only. Janakpur – Jaynagar railway was constructed in 1934 AD. Its length is 52 Km. At present, this is only railway of Nepal.

  1. Ropeway:

The transport system operated in electrical cable is called Ropeway. There is greater prospect of rope way service in Nepal.

  1. Air transport:

The road transport facility cannot be developed in all parts of the country at once due to hilly topography. Therefore, air transport service remains to be the sole means of transport in remote hilly areas of Nepal. The air transport system was developed in Nepal with the establishment of Nepal Airlines Corporation in 2016 BS. The air transport system is the backbone of tourism industry. At present, there are 51 airfields including 1 international airport in Nepal.

Means of Communication:

            The communication is an essential pre-requisite for economic development. It has special significant in overall development of a country. There are two types of means of communication i.e. personal communication and mass communication. The personal means of communication are postal service, telephone service and wireless. Similarly, the means of mass communication are radio, television and newspaper.

Present situation of Means of Communication:

  1. Postal service:

This is the oldest means of communication. The history of postal service started in Nepal from 1879 AD. At present , there are about 4033 post offices in Nepal including 1 general post office.

  1. Telecommunication:

It is the fastest means of communication. It has been able to substitute postal service in urban areas in some extent. The telecommunication department was established in 2016 BS in Nepal.

  1. Radio Broadcasting service:

It is an important means of mass communication. Radio Nepal was established in 2007 BS. This service is broadcasting educational, recreational and informative programmes. At present, many FM services are also providing different programmes established in private sectors.

  1. Television service:

The television service is an alive and effective means of mass communication. Nepal Television was established in 2042 BS. It is expanding its service in various parts of the country. At present, about 70% of the population can watch television programmes.

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