Andaman and Nicobar Islands

The Andaman & Nicobar Islands (ANI) is a Union Territory of India. It is located in the Indian Ocean, in the southern reaches of the Bay of Bengal. The UT comprises of two island groups - the Andaman Islands and the Nicobar Islands - which separates the Andaman Sea to the east from the Indian Ocean.

The Andaman & Nicobar Islands are endowed with a diverse tropical rainforest canopy, featuring a blend of flora from Indian, Myanmarese,

Malaysian origins, and unique endemic species. The islands host 2,654 species across 237 families and 1,083 genera, including a wide range of plant groups. Of these, 308 species are endemic to the islands, and over 350 species are recognized for their medicinal properties, highlighting the potential for commercial utilization subject to policy regulation. Currently, forests cover approximately 93.69% of the total land area, categorized into twelve distinct types including giant evergreen, tropical evergreen, semi-evergreen, moist deciduous, and mangrove forests, among others, each contributing to the rich biodiversity of the region. The primary source of usable water in the Andaman & Nicobar Islands is rainwater, collected during the monsoon season and distributed throughout the year. Agriculture in the Andaman and Nicobar Islands was established over a century ago.

The primary agricultural regions include Diglipur, Swaraj Dweep, Shaheed Dweep, and select areas in South Andaman, producing crops like paddy, pulses, fruits and vegetables (bananas, sugarcane, sweet potatoes, tapioca, papaya, jackfruit, mango, pineapple etc). The islands also grow spices such as chilies, black pepper, ginger, turmeric, nutmeg, cinnamon, and cloves. Key plantation crops like coconut and Erica nut play a vital role in the development of food-based industries, alongside other crops like banana, papaya, jackfruit, mango, pineapple, rubber, spices, and cashew nut, o􀆯ering potential for food and agro-based industrial activities.

The Gross State Domestic Product (GSDP) stands at 10371 crore Rs. Growth rate in the FY 2021-22 stood at 11.39 percent. Overall, Andaman & Nicobar Islands’ economy has grown steadily. Recent trends show that the Service sector contributes more than two-thirds of the UT’s GSDP. The share of Secondary or Manufacturing sector is more than Primary sector, which is a positive indicator. The share having remained consistent at nearly 17 percent in the past few years, the sector has immense potential and will contribute to a larger chunk in the coming years. But consequent to the Islands’ ecology, paucity of land and other factors, services will continue to be the leading sector in the economy.

The UTs of A&N signed the Letter of Undertaking (LoU) with the Ministry of MSME, Government of India on January 2023. It submitted its Strategic Investment Plan (SIP) on 29th December 2024 and RPC approved projects worth Rs. 41.18 Cr for Andaman & Nicobar.