The long coastline of 1,962 km offers tremendous opportunities for investment in India's marine industries and cruise tourism.
Andaman & Nicobar is an important hub for the economic strategic cooperation of India. The role of Andaman & Nicobar 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 the development of projects in the state, the Island Development Agency was created 3 years ago.
Submarine Cable will assist Andaman & Nicobar 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 Transshipment Port was 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 had 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 were in the pipeline. The government was 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 Andaman & Nicobar.
The operations of the new terminal building of the Port Blair Airport commenced in August 2023.
In FY25 (until February 2025), the total merchandise exports from the union territory stood at Rs. 7 crore (US$ 0.87 million).
In FY25 (until February 2025), the state exported key items such as marine products which contributed 85% to the total exports in the state.
In FY25, Andaman and Nicobar had a total installed power generation capacity of 127.87 MW, comprising 92.71 MW from thermal and 35.16 MW from renewable energy sources (RES).
From the total installed power generation capacity, the state utilities sector was the largest contributor with a capacity of 62.77 MW, followed by 60 MW from the private sector, and 5.10 MW from central utilities.
The state witnessed a 37% increase in domestic tourist arrivals during CY24, reaching a total of 7,10,000 visitors.
In FY25 (until February 2025), Port Blair Airport recorded 3,168 metric tons in freight, along with 1,49,472 passengers and 11,566 aircraft movements.
12 Andaman and Nicobar Islands were chosen for high-impact projects, with a 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.