The Andaman & Nicobar (A&N) Islands, located in the Indian Ocean, are a group of 572 islands in the southeastern part of the Bay of Bengal. The islands are situated close to Indonesia and Thailand.

Presence of 23 ports and an international airport in the capital city—Port Blair—makes it well connected with the rest of the world.

Development of a deep internal port draught and proposal to build a trans-shipment port in Great Nicobar at an estimated cost of approximately Rs. 100 billion (US$ 1.36 billion) will enable large ships, along with new employment opportunities, to anchor and increase India's share in maritime trade.

High-impact ventures are being extended across 12 Andaman & Nicobar Islands. To boost the North and Middle Andamans road connectivity, two major bridges and the NH-4 are under construction.

As of August 2022, Andaman and Nicobar had a total installed power generation capacity of 75.21 MW, comprising 40.05 MW from thermal and 34.16 MW from renewable energy sources (RES).

In FY22, the total merchandise exports from the state stood at US$ 1.14 million, while during FY23 (till August 2022) it stood at US$ 0.42 million.

The following are some of the key government initiatives to promote A&N as an investment destination:

• As of March 2022, the Japan International Cooperation Agency (JICA) and the Government of India signed a grant for a power supply project in the Andaman and Nicobar Islands worth Rs. 250 crores (US$ 32.54 million).
• In July 2021, Dr. Jitendra Singh, Minister of Science & Technology, and Earth Sciences stated that satellite communication is being used for beaming educational content in digital mode amid the pandemic in Andaman & Nicobar Islands.
• In August 2021, under the Marine Aids to Navigation Bill 2021, traditional and historical values of lighthouses would be preserved and showcased as part of the initiative. Thus, the government identified 65 lighthouses to become a tourist spots. Lighthouses in Andaman And Nicobar Islands have been identified under this initiative to boost tourism.
• In March 2021, the Union Ministry of Home Affairs (MHA) announced that it is vetting 41 proposals of projects from various sectors including road construction, hospitality and industries in Andaman & Nicobar Islands and Lakshadweep.
• In March 2021, the Government of India announced that it would set up four water aerodromes in the Andaman & Nicobar Islands to develop the union territory as a tourist destination so that it can be at par with Maldives and Mauritius.
• In October 2020, Andaman and Nicobar administration opened tourist activities in South Andaman, while North and Middle Islands are still closed for tourists due to COVID-19.
• The Indian government has set target for Andaman and Nicobar to attain 100% of its energy needs through renewable energy
• Development projects have been launched in the A&N Islands by the National Bank for Agriculture and Rural Development (NABARD) to improve the Atmanirbhar Bharat concept through rural entrepreneurship. This will concentrate on the creation and skills growth of self-help groups (SHGs) to facilitate micro-level rural entrepreneurship.
• To attract investment and technological & management expertise from the private sector, four tourism-based projects in the Andaman & Nicobar Islands were developed for implementation through the Public-Private Partnership (PPP) mode.
• In August 2020, Prime Minister Mr. Narendra Modi inaugurated the Submarine Optical Fibre Cable (OFC) for better connectivity in A&N.
• High-impact ventures are being extended across 12 Andaman & Nicobar Islands. To boost the North and Middle Andamans road connectivity, two major bridges and the NH-4 are under construction.
• Port Blair Airport is being renovated to accommodate 1,200 passengers. In addition, the airports are ready for Diglipur, Car Nicobar and Campbell-Bay operations.
• Four ships being built at the Kochi Shipyard are likely to improve water connectivity between the islands and the mainland.