Introduction
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.
Key Sectors
- 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.
- In December 2022, India and Indonesia held a meeting on the development of connectivity between Andaman and Nicobar Island and Aceh Province.
- In 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, Minister of Science & Technology, and Earth Sciences, Dr. Jitendra Singh stated that satellite communication is being used for beaming educational content in digital mode amid the pandemic in Andaman & Nicobar Islands.
- In 2020-21, the state produced 1,253.69 lakh nuts of coconut under an area of 18,095.38 hectares.
- 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, government identified 65 lighthouses to become a tourist spots. Lighthouses in Andaman And Nicobar Islands have been identified under this initiatives to boost tourism.
- In March 2021, the Government of India announced that it would set up four water aerodromes in Andaman & Nicobar Islands to develop the union territory as a tourist destination that can compete with the likes of Maldives and Mauritius.
- In March 2021, the Union Ministry of Home Affairs (MHA) announced that it is vetting 41 proposals for projects from various sectors including road construction, hospitality and industries in Andaman & Nicobar Islands and Lakshadweep.
- In March 2021, the Environment Ministry recommended a near-negligible eco-sensitive zone (ESZ) around Galathea National Park (GNP) in the Great Nicobar Island in the Andaman and Nicobar Islands region.
- In March 2021, the island of Andaman and Nicobar received a 150-tonne cargo vessel named Sindhu from the Cochin Shipyard Ltd. for the movement of supplies and people. The cargo vessel can carry 500 passengers.
- In January 2021, state-owned power producer NTPC announced that it will deploy 14 electric buses and will also set up public charging infrastructure in the islands. Introduction of electric buses will help cut down tailpipe emissions
- In 2019-20, the estimated potential of fish production in A&N stood at 43.79 thousand tonnes.
- NABARD has taken up 14 agricultural projects with a gross refinancing of more than Rs. 1.2 billion (US$ 16.32 million). The bank is also encouraging organised farming on the islands and focusing on the growth of skills.
- In the Andaman and Nicobar Islands, the NABARD regional office has a credit plan of about Rs. 6 billion (US$ 81.59 million) for FY 2019-20.
- The islands have been recognised as an eco-friendly tourist destination.
- In 2022 (Until September 2022), foreign and domestic tourist visits in the state stood at 2,533 and 133,657 respectively.
- Four tourism-based projects have been initiated in A&N for implementation through the Public-Private Partnership (PPP) model to attract investment and technical & management expertise from the private sector.
- In October 2020, Radhanagar Beach in Andaman and Nicobar Islands was among the eight Indian beaches that received the famed Blue Flag ecolabel certification awarded by the Foundation for Environment Education, Denmark.
FACTFILE
Capital
Port BlairGeographical Area (sq km)
8,250State Language
Bengali, Tamil and HindiLiteracy Rate
86.63 per centAdministrative Districts
3Key Industries:
Fishery
Agriculture
Tourism
Partners
