About 89% of Andaman and Nicobar Islands' total area is under forests (reserve +deemed +wetlands +mangroves) and holds about 2,000 sq. km. of coral reefs.
Andaman & Nicobar (A&N) is an important hub for the economic strategic cooperation of India. The role of A&N in India's strong ties with East Asian countries and other sea-related countries is very critical under the Act-East Policy and this is likely to grow. To improve development of projects in the state, the Island Development Agency was created three years ago.
Submarine Cable will assist A&N in providing cheaper and better connectivity and Digital India's advantages, especially in improving online education, telemedicine, banking, online trading and tourism.
A mega International Container Transhipment Port is going to be set up at the Galathea Bay of Great Nicobar Island. The first phase is targeted for completion in 2028 at a handling capacity of 4 million Twenty-Foot Equivalent Units.
The government has already invested Rs. 30,000 crore (US$ 3.64 billion) in the last eight years in the Andaman and Nicobar Islands, and Rs. 10,000 crore (US$ 1.21 billion) worth of investments are in the pipeline. The government is planning to develop a trans-shipment hub, a greenfield airport, a township, and a diesel/solar power plant as part of a mega infrastructure boost to the strategically located island chain.
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.
The island's blue economy such as fisheries, aquaculture, and seaweed farming will accelerate in line with the growth of modern infrastructure in A&N.
Rs. 5,987.14 crore (US$ 728.1 million) has been allocated to Andaman and Nicobar Islands for the Financial Year 2023-24 in the Union Budget 2023-24.
In FY23, the total merchandise exports from the state stood at US$ 5.91 million, while during FY22, it stood at US$ 1.14 million.
12 Andaman and Nicobar Islands were chosen for high-impact projects, with focus on improving the region's trade in sea-based, organic and coconut-based products. In September 2020, government think-tank Niti Aayog started the process of hiring consultants to prepare a master plan for the holistic development of the Great Nicobar Islands through the public–private partnership model.
The Indian government has set targets for Andaman and Nicobar to attain its energy needs through 100% renewable energy.