Vizag Chennai Industrial Corridor (VCIC), part of East Coast Economic Corridor (ECEC), is the first coastal economic corridor in the country. It is aligned with the golden quadrilateral and covers more than 800 kilometers of the state of Andhra Pradesh’s coastline. VCIC is poised to play a critical role in driving India’s economy and to further integrate the Indian economy with the dynamic global production network of East and Southeast Asia. Greater connectivity and economic integration between South and Southeast Asia is likely to contribute to significant benefits for both subregions and foster regional cooperation. As a coastal corridor, VCIC can provide multiple access points to international gateways to these geographies
The proposed program is in line with ADB’s country partnership strategy for India, which supports the government’s vision of a faster, more inclusive, and sustainable growth with emphasis on developing robust infrastructure to increase productivity, competitiveness, and access to services. Salient features of VCIC are:
  • It spans a relatively developed coastal region (10% of India’s coast) and supports a large hinterland (from arid Rayalaseema to forested eastern ghats) that offer resources but has significant social and economic developmental needs;
  • Strategic location that helps link into global production networks (using production - industry - port link to be competitive), resulting in stronger regional economic integration;
  • Nodes are non-contiguous (as its densely populated, fertile farmland) but scale benefits can still be gained by incorporating existing development, which also relieves pressure for land acquisition;
  • All nodes are within one state, which allows institutional capacity to be pooled to get right competencies and speed up implementation.
The expected impact of VCIC will be an increased contribution of the manufacturing sector to the state’s GDP, trade, and employment. VCIC has the advantage of a long coastline, the presence of key ports and urban agglomerations, and a workforce that will help it achieve the following industrial transformation objectives:
  • Achieve accelerated industrial output
  • Expand employment opportunities
  • Increase labor productivity & wages
  • Diversify the range of manufacturing products
  • Expand exports over the next two decades
  • Link the corridor with Global Production Networks
In order to achieve these objectives the focus is on stimulating economic activities, increased connectivity with global production network and improved transport connectivity.