Puducherry, a union territory (UT) of India, is bounded on the East by the Bay of Bengal and on the remaining three sides by Tamil Nadu. The UT comprises Puducherry, Karaikal, Mahe and Yanam, wherein Karaikal lies about 130 km south of Puducherry on the East Coast and Mahe is situated on the Malabar Coast on the Western Ghats surrounded by Kerala. Yanam is situated adjoining the East Godavari district of Andhra Pradesh. The coastline is 45 kms, with 26 landing centers and 1,000 sq. km. of continental shelves (with potential marine fisheries).

The UT has a strong presence in the tourism, agriculture, and marine product sectors. It is an attractive tourist destination with beaches and French architecture. In 2022 Puducherry witnessed arrivals of 17.6 lakh domestic tourists and 900 foreign tourists.

Puducherry has a fishermen population of about 1,09,417 of which 28,767 fishermen are actively engaged in fishing from 38 marine fishing villages and 12 inland fishing villages/hamlets in 2021. The marine fish and prawn catch production (in 2022) was estimated at 1,59,82 MT, whereas inland fish catch was estimated at 1,497.40 MT. The union territory is also endowed with freshwater area in the form of ponds and tanks that are suitable for both capture and culture fishery.

In 2021-22, the tertiary sector contributed 46.42% to the state’s gross state value added (GSVA) at current prices, followed by secondary (48.17%) and primary (5.41%) sectors.

As of March 2024, Puducherry had a total installed power generation capacity of 427.56 MW, of which 345.15 MW was under central utilities, 32.50 MW was under state utilities and 49.91 MW was under the private sector. Of the total installed power generation capacity, 291.65 MW was contributed by thermal and 49.91 MW by renewable energy.  

Agriculture is one of the most important occupations for the people of Puducherry. About 45% of the total population depends directly or indirectly on farming. The agriculture sector contributes <2% of the Gross State Domestic Product (GSDP) of the Government of Puducherry. The UT is one of the largest producers of bananas, flowers, tapioca, coconut, groundnut, and sugarcane in the country.

Puducherry has the highest SPI score of 65.99 in the country, attributable to its remarkable performance across components like Personal Freedom and Choice, Shelter, and Water and Sanitation.

The following are some of the major government initiatives to promote Puducherry as an investment destination:

• Under the Puducherry Budget 2023-24, Rs. 108.34 crore (US$ 13.01 million) has been allocated for the Fisheries department.
• As per Union Budget 2023-24, 10 Years perspective 'Tourism Plan' would be developed for promoting tourism in Union Territory of Puducherry for creating employment opportunities to 5,000 youths in the next 5 years.
• Under the Puducherry Budget 2023-24, Rs. 159.36 crore (US$ 19.12 million) has been allocated for agriculture and farmers welfare department.
• Under the “Paramparaghat Krishi Vikas Yojana” Scheme, organic farming practices would be promoted. It is also proposed to bring around 600 hectares, under organic farming cultivation during 2023-24 and 2024-2025
• As per Union Budget 2023-24, it is proposed to enact Puducherry Micro Small & Medium Enterprises Act, to grant exempt from getting approvals and inspections for a period of three years from the date of commencement of business.
• As per the Union Budget 2023-24, the government allocated Rs. 1,042.64 crore (US$ 125.12 million) to the Health Department.
• Under the Puducherry Budget 2023-24, Rs. 924.68 crore (US$ 110.97 million) has been allocated for school education. The amount of Rs. 312.27 crore (US$ 37.47 million) has been allocated for Higher and Technical Education in 2023-24.
• As per the Union Budget 2023-24, under "AMRUT 2.O", Government of India has accorded approval for the project cost of Rs. 150 crore (US$ 18 million) for various water supply, rejuvenation of water body, sewerage and septage management projects in urban local bodies of Puducherry, Karaikal, Mahe and Yanam regions.
• As per Union Budget 2023-24, under Smart City Project, linking of various urban storm water drains and improvement works for an amount of Rs. 99.50 lakh (US$ 0.11 million).
• In 2023, the government is committed to improve Puducherry's socio-economic aspect to improvise investment opportunities.
• In December 2022, Tourism minister dedicates four projects under Swadesh Darshan scheme to the nation in Puducherry.
• In April 2022, Minister of Cooperation and Home Affairs, Mr. Amit Shah laid the foundation for three academic buildings in Puducherry worth Rs. 48.66 crore (US$ 6.31 million). 
• In July 2021, the government revived its plan to expand the runway of Puducherry airport with a few modifications in the land plan. According to the new extension plan, the runway would be extended from its current length of 1,500 metres to 3,300 metres in the first phase by acquiring 170 acres of land.
• In February 2021, Prime Minister, Mr. Narendra Modi inaugurated the Blood Centre at the Jawaharlal Institute of Postgraduate Medical Education and Research (JIPMER), Puducherry, and dedicated a 100-bed hostel to women athletes in Lawspet, Puducherry. In addition, he inaugurated the reconstructed Heritage Marie Building.
• In February 2021, The Ministry of MSME announced that it is establishing an expertise centre in Puducherry to promote, support and foster growth of indigenous MSMEs and start-ups in the state.
• In January 2021, the Department of Fisheries and Fishermen Welfare in Puducherry introduced a helpline to assist fishermen in contacting the department to resolve their grievances.
  • In addition, the government will provide transponders at a subsidised rate. It will offer a subsidy of Rs. 5,000 (US$ 68.90) and as a transponder costs Rs. 15,000 (US$ 206.69), the fishermen would only have to pay Rs. 10,000 (US$ 137.79) to procure the device.