Visakhapatnam-Chennai Corridor to Link Underdeveloped Areas with Industrial Hubs
The Visakhapatnam-Chennai Industrial Corridor (VCIC) has gained prominence following its inclusion in India’s Union Budget 2024. Shri Nirmala Seetharaman, Hon’ble Minister of Finance, Government of India, announced funding for Kondaparthy, a key node within the corridor. Spanning primarily across Andhra Pradesh, the VCIC is part of the East Coast Economic Corridor, which aligns with the country’s ‘Act East Policy’, which focuses on strengthening trade connections with ASEAN nations.
The VCIC promises to stimulate growth across various sectors in Andhra Pradesh, including food processing, pharmaceuticals, automobiles, textiles, metallurgy, and electronics. It aims to support small and medium-sized enterprises (SMEs) by integrating them into modern supply chains and encouraging interactions with global firms. The corridor’s development in Sri City, an integrated business city in Andhra Pradesh, located near Chennai, India, and improved port traffic will further improve the region’s economic base.
The VCIC will also link underdeveloped areas with industrial hubs that are thriving to create jobs and expand economic opportunities. Key nodes for development include Visakhapatnam, Chittoor, Kopparthy, Machilipatnam, and Danakonda. By improving the infrastructure and significantly reducing logistics costs, the corridor is expected to contribute to the country’s manufacturing sector and support the ‘Make in India’ initiative.