Lakshadweep

Recent Developments in Key Sectors

In Lakshadweep, the estimated potential of marine fishery resources is about one lakh tonnes of tuna.

• In March 2026, Union Minister Dr. Jitendra Singh stated that a first-of-its-kind integrated Ocean Thermal Energy Conversion (OTEC)-powered desalination plant is being established at Kavaratti Island in Lakshadweep.
• In Budget 2026-27, provisions worth Rs. 244.98 crore (US$ 27.22 million) were made for the power sector in Lakshadweep, registering an increase of 5.5% over the revised allocation of Rs. 232.11 crore (US$ 25.79 million) in 2025-26.
• As noted on June 10, 2025, the Ministry of Ports, Shipping and Waterways is strengthening Lakshadweep’s marine infrastructure with Rs. 1,664.88 crore (US$ 194.60 million) for new jetties and port facilities, along with proposals worth Rs. 2,128.86 crore (US$ 248.80 million) for beachfront development, roads, and coastal protection across key islands.
• In May 2025, Lakshadweep has signed an MoU with the Solar Energy Corporation of India (SECI) to accelerate its shift towards renewable energy.
• On August 22, 2025, Kerala announced that seaplane services from Kochi to Lakshadweep would launch the following month after completing successful trial runs.
• On January 13, 2025, Lakshadweep saw its first-ever high-speed craft vessel berth at Amini Island’s newly completed western jetty, marking a major improvement in safe and reliable connectivity.
• Starting in 2025, construction activities across key islands like Kalpeni, Kadmath, and Androth will commence, with Cochin Port Authority as project management consultant and Assystem India Limited responsible for detailed project reporting.
• Budget 2025–26 emphasizes sustainable deep-sea fishing in India’s 20 lakh sq. km EEZ, focusing on Lakshadweep and A&N Islands to unlock the 53 lakh tonne marine potential, especially high-value tuna, through capacity building and support for resource-specific fishing vessels.
• Prime Minister, Mr. Narendra Modi inaugurated, development projects worth more than Rs. 1,150 crore (US$ 138.06 million) in Kavaratti, Lakshadweep. The development projects cover a wide range of sectors including technology, energy, water resources, healthcare and education.
• The government of India has outlined a comprehensive Rs. 3,600 crore (US$ 432.17 million) infrastructure upgrade plan aimed at transforming the Lakshadweep islands into a premier tourist destination.
• In September 2021, large-scale farming of indigenous seaweeds was launched in nine inhabited islands of Lakshadweep under the guidance of the Central Marine Fisheries Research Institute (CMRI). The plan is to produce 30,000 tonnes in a year, which will be worth Rs. 75 lakh (US$ 98,120).
• In June 2021, Lakshadweep started exporting tuna to Japan, via Bengaluru.
• A three-day Capacity Building programme was organized by DIET Lakshadweep for the Post Graduate Teachers of Lakshadweep on 5th January 2023.

In Lakshadweep, tourism is one of the few areas that can play a vital role in generating revenue, jobs and overall island growth.

• In Budget 2026-27, Rs. 2.09 crore (US$ 232,222) were made towards tourism development in Lakshadweep, including a capital outlay of Rs. 1.31 crore (US$ 145,556).
• In Budget 2026-27, provisions worth Rs. 5.52 crore (US$ 613,333) were made for agriculture and allied activities in Lakshadweep, compared with Rs. 6.02 crore (US$ 668,889) in the revised estimates of 2025-26.
• Eco-tourism in Lakshadweep is gaining momentum with three Water Villa Projects in Minicoy, Kadmat and Suheli being developed in consultation with NITI Aayog at an investment of Rs. 810 crore (US$ 94.70 million), alongside weekly cruise liner operations connecting Mumbai, Kochi, Agatti and Thinnakara.
• Domestic tourism in Lakshadweep has increased by 47.24% in 2024 from 2023.
• Lakshadweep saw a sharp rise in tourism in 2024, with domestic visitors stood at 67,000 and foreign arrivals increasing to 1,000, reflecting growing interest and improved accessibility.
• According to NITI Aayog, which has requested consultant bids, the Lakshadweep administration intends to create eco-tourism projects in public-private partnerships on 11 islands.

Lakshadweep, India’s smallest Union Territory, comprises 36 islands strategically located in the Arabian Sea, giving India a vast exclusive economic zone rich in fisheries, especially high-value tuna. The islands hold strong strategic importance for maritime security and surveillance in the western Indian Ocean. Economic activity is driven by fisheries, eco-tourism and renewable energy. Connectivity is improving through submarine optical fibre links, upgraded jetties, high-speed vessels and proposed seaplane services. Lakshadweep is emerging as a model for sustainable development with initiatives in solar power, ocean thermal energy, desalination, seaweed farming and low-impact tourism, while preserving its fragile marine and island ecosystems.