Development of East Coast Economic Corridor and Vizag-Chennai Industrial Corridor

The East Coast Economic Corridor (ECEC)—India’s first coastal corridor—is an example of an integrated economic development initiative. The key idea behind the corridor is port-based industrial development along the eastern coastal belt of India, in alignment with the goals of the Sagarmala initiative, and integration of India’s industrial clusters with value chains extending to Southeast Asia and East Asia. The development of the ECEC will start with Vizag–Chennai Industrial Corridor (VCIC) which covers about 800 kilometers and includes several port clusters as well as major industrial clusters.

This paper provides a detailed discussion of the policies and strategies that should be considered to attain the overall objective of improving shipping and air connectivity in ECEC and VCIC while developing an enabling environment for efficient logistics support businesses that play a critical role in the management of global supply chains. The ECEC and VCIC will align with the national objectives of expanding domestic markets, pursuing port-led industrialization, and integrating domestic companies into the vibrant global value chains of Southeast Asia and East Asia.