The strategic advantages to India derive from obtaining a navigable sea route close to the coast, with a reduction in travel distance of more than 350 nautical miles (650 km) (for larger ships). The project is expected to provide a boost to the economic and industrial development of coastal Tamil Nadu. The project will be of particular significance to Tuticorin harbour, which has the potential to transform itself into a nodal port. The State Government has announced its proposal to develop 13 minor ports, including Ennore, Cuddalore, Nagapattinam, Thondi, Valinokam, Kolachel and Kanyakumari.
Development of the canal and ports is also expected to provide increased maritime security for Tamil Nadu.