"VCIC will also be an important component of the government's Make in India campaign to attract foreign investors and encourage the creation of manufacturing hubs in the country", Asian Development Bank (ADB) said in a summary of a publication.
The VCIC will be India's first coastal economic corridor.
Spanning over more than 800 kilometers of India's eastern coastline, the VCIC is part of India's East Coast Economic Corridor.
It 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, ADB said.
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"As a coastal corridor, VCIC can provide multiple access points to international gateways."
Greater connectivity and economic integration between South Asia and the rest of Asia is likely to contribute significantly to development and foster regional cooperation as well, it added.
ADB and the Government are working together to draw up a master plan for the VCIC.