A New Era For Economic Alliances: The East Coast Economic Community Explained

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East Coast Economic Community (ECEC)
Representational Image

Editor’s note

The economic progress of our east coast and northeastern states could experience an impetus if the focus is concentrated on building our linkages with ASEAN countries and even beyond with Japan, Australia and New Zealand. The necessary impetus has been provided by the graduation to Act East from Look East. The article explores the broader contours.

India has long considered Southeast Asia a region of strategic priority and economic significance. The “Look East Policy” (LEP) initiated in 1991 marked India’s first major outreach to Southeast Asia and the Association of Southeast Asian Nations (ASEAN). At the time, Myanmar served as India’s gateway to ASEAN. Additionally, India pursued regional partnerships through the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and the Mekong-Ganga Cooperation (MGC), strengthening ties with key regional players.

In 2014, the “Act East Policy” (AEP) transformed LEP into a comprehensive strategic framework, expanding India’s engagement beyond ASEAN to include Japan, South Korea, Australia, New Zealand, and the Pacific Island nations. AEP also recognized Bangladesh as an important bridge to ASEAN. Furthermore, India’s participation in the Quadrilateral Security Dialogue (QUAD) with the United States, Japan, and Australia has reinforced its role in the Indo-Pacific.

India’s East Coast and Its Strategic Significance

The evolving regional security landscape, particularly the political turbulence in Bangladesh since August 2024 and the civil war in Myanmar since 2021, necessitates a strategic reassessment of India’s eastern flank. With India’s borders with Pakistan and China largely secure against major overland threats and the Northeast region stabilizing, the focus must now shift to the safety, security, and economic stability of Peninsular India. Both the East and West coasts are crucial in this regard.

While India’s West Coast has experienced more vigorous development and remains under constant security vigilance due to its volatile neighbourhood, the East Coast is emerging as a critical pillar for India’s future economic and strategic initiatives. The East Coast Economic Community (ECEC) envisions integrating Tamil Nadu, Andhra Pradesh, Odisha, and West Bengal, along with Karnataka, into a dynamic economic bloc. Additionally, India’s Northeast states (Assam, Arunachal Pradesh, Manipur, Mizoram, Meghalaya, Nagaland, and Tripura) and its Andaman and Nicobar Islands will play a pivotal role in strengthening India’s Indo-Pacific engagement.

Role of Indian States in ECEC

Each of the key states in the ECEC contributes significantly to India’s economic strength and connectivity with ASEAN and beyond:

  • Tamil Nadu. Contributes nearly 9% of India’s GDP, with the Chennai port serving as a major hub for Indo-Pacific trade. The state has strong automotive, electronics, and IT industries, attracting foreign investments from Japan and South Korea.
  • Andhra Pradesh. Houses major ports like Visakhapatnam and Krishnapatnam, facilitating maritime trade with ASEAN. The state has received investments from Singapore-based companies in infrastructure projects. It will be recalled that Andhra Pradesh had a strong association with Singapore on business and economic partnerships.
  • Odisha. A key mineral and steel hub, Odisha is crucial for trade with Southeast Asia. Japan has collaborated with Odisha for industrial corridor development. Most recently, President of Singapore, Tharman Shanmugaratnam visited Odisha on January 17-18, 2025 and witnessed signing of a non-binding memorandum of agreement on producing sustainable fuels from green hydrogen. This followed a visit to Singapore in November 2024 by a delegation led by the Odisha CM, Mohan Charan Manjhi.
  • West Bengal. The state’s proximity to Bangladesh and its trade through the Kolkata port make it a critical node in Indo-ASEAN connectivity. Ongoing collaborations with Thailand and Vietnam in logistics and textiles enhance trade potential.
  • While primarily on the west coast, Bengaluru’s technology sector has played a pivotal role in cybersecurity and fintech collaborations with ASEAN nations, contributing to the digital economy of the region.

Overcoming Challenges Posed by Instability in Bangladesh and Myanmar

To ensure resilience against political instability in Bangladesh and Myanmar, the ECEC can adopt several strategic measures:

  • Strengthening Alternative Connectivity Routes. Developing direct maritime corridors from Paradeep, Chennai, Visakhapatnam, and Kolkata to ASEAN ports like Laem Chabang (Thailand) and Ho Chi Minh City (Vietnam) to reduce reliance on overland transit.
  • Diversifying Trade & Investment Partnerships. Encouraging investments from Japan, South Korea, and the QUAD nations into ECEC-based industrial corridors to offset disruptions in Myanmar and Bangladesh.
  • Enhancing Border & Maritime Security. Increasing coast guard cooperation with ASEAN nations to prevent illicit trade, human trafficking, and smuggling, while expanding naval patrols in the Bay of Bengal.
  • Regional Development Initiatives. Working with ASEAN and BIMSTEC partners to stabilize Myanmar through targeted economic assistance and infrastructure development in key regions.
  • Leveraging QUAD & Indo-Pacific Partnerships. Collaborating with QUAD members to support democratic resilience in Bangladesh and Myanmar while positioning the ECEC as a key economic hub in the Indo-Pacific.

The Role of ECEC in India’s Indo-Pacific Strategy

The National Democratic Alliance (NDA) government under Prime Minister Narendra Modi has actively advanced the AEP through a multidimensional approach emphasizing Culture, Connectivity, and Capacity Building. This vision aligns with the “Security and Growth for All in the Region” (SAGAR) initiative, which extends India’s strategic outreach to Seychelles, Mauritius, and the Maldives.

Looking ahead, ASEAN countries are increasingly seeking deeper economic linkages with India. The ECEC can serve as a vital platform for fostering engagement with ASEAN and beyond, potentially including Taiwan. Furthermore, as QUAD partnerships grow in economic, trade, and strategic domains, the ECEC could emerge as a key contributor to regional stability and prosperity.

Foreign Collaboration in ECEC Projects

Foreign collaborations are essential for enhancing the infrastructure and economic potential of ECEC. Key initiatives include:

  • Japan’s Partnership in Connectivity. Japan has invested in the Chennai-Bangalore Industrial Corridor and the East Coast Economic Corridor, strengthening port connectivity and industrial growth.
  • Singapore’s Investments in Andhra Pradesh. The development of Amaravati, the state’s capital, was partially funded by Singapore-based firms, showcasing strong India-ASEAN urban infrastructure partnerships.
  • South Korea’s Role in Tamil Nadu. Hyundai and Samsung have expanded their manufacturing units, created thousands of jobs and boosted exports.
  • Thailand and Vietnam in West Bengal. Collaborations in trade logistics and textile industries have increased bilateral trade.
  • Taiwan’s Role in ECEC. Taiwan has shown keen interest in strengthening economic cooperation with India, particularly in the areas of semiconductor manufacturing, electronics, and technology-driven industries. With Taiwanese firms looking to diversify their supply chains beyond China, ECEC provides an attractive destination for investment, fostering mutual economic growth and enhancing India’s technological capabilities.

Non-Traditional Security in the ECEC-ASEAN Context

Beyond conventional threats, non-traditional security concerns are becoming increasingly significant in the ECEC-ASEAN engagement. These include:

  • Maritime Security & Blue Economy. Strengthening coast guard collaboration, marine conservation, and sustainable fisheries management with ASEAN partners.
  • Cybersecurity & Digital Resilience. Enhancing cybersecurity cooperation with ASEAN nations to safeguard trade and financial transactions.
  • Climate Change & Disaster Management. Joint climate resilience strategies to mitigate risks in coastal cities and islands.
  • Public Health & Pandemic Preparedness. Strengthening India-ASEAN cooperation in epidemic response and vaccine research.
  • Supply Chain Security & Economic Resilience. Developing resilient trade corridors to reduce dependency on China-centric supply chains.

Conclusion

The East Coast Economic Community (ECEC) represents a transformative initiative to integrate India’s eastern states and overseas territories into a coherent economic and strategic framework. By leveraging foreign collaborations and domestic strengths, ECEC can drive economic growth, enhance regional connectivity, and bolster India’s Indo-Pacific strategy. Good governance, economic progress, and national security are indispensable to India’s comprehensive national power. The ECEC, through its integration with ASEAN and other key partners, will reinforce India’s position as a leading player in the Indo-Pacific region.

Pratap Heblikar

 

 


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