(i) Widening of Market : With the emergence of improved means of transport, goods and services can be moved from one place to another at considerably low expenses and with greast ease and speed. This stimulates to produce for local as well as foreign market and expansion of national and international trade.

(ii) Mobilisation of Resources: Transport facilitates the mobility of man, materials and money which is necessary for large scale production and for having balanced development of various regions in the country.

(iii) Regional Specialisation : Transport leads to specialisation on geographical basis. It can concentrate only on the production of those products for which it is most suited and can depend on transport to get its other requirements fulfilled from other regions and sell its surplus production to other regions.

(iv) Price Stabilisation : Transport helps in stabilising prices by facilitating movement of goods from surplus areas to deficit areas. This loads to equilisation of prices in different regions.

(v) Economies of Scale : Transport facilitates the achievement of various economies of large scale production which leads to low cost of production.

(vi) Growth of Industries : Transport helps the growth of industries producing perishable goods like fruits, vegetables and dairy products by carrying them quickly to various consumers located in different areas.

(vii) Social functions : Transport provides employment to people. It helps in stabilising prices. It assists in removing regional disparities.

(viii) Nationalism : Transport is necessary for achieving national integration. It creates a bond of unity among the people of different regions in the country. Transport is indispensable for the defence of a country.