NEW Delhi: India’s first coastal economic corridor can help unify the country’s domestic market, integrate its economy with Asia’s global value chains, and support the Make in India initiative to spur manufacturing, a new study by the Asian Development Bank (ADB) showed. Spanning more than 800 km of India’s eastern coastline, the Vizag-Chennai Industrial Corridor (VCIC) is part of the country’s east coast economic corridor.
The NITI Aayog has advocated building coastal economic zones to boost trade and economic growth. NITI Aayog vice chairman Arvind Panagariya has said India should look at creating large, export oriented firms and coastal economic zones to garner a bigger share of global trade.
The new industrial corridor is expected to spur growth by augmenting investment in world-class transport networks, infrastructure, and industrial/urban clusters that are supported by a robust institutional framework and a competitive business environment, the report titled ‘Scaling New Heights’ said.
“By linking areas that are lagging in development with dynamic industrial and urban clusters, VCIC will create employment opportunities to alleviate poverty and reduce inequality. As a coastal corridor, VCIC can provide multiple access points to global gateways,” the report said. “Greater connectivity and economic integration between South Asia and rest of Asia is likely to contribute significantly to development and foster regional cooperation as well.