Print
XClose
Press Information Bureau
Government of India
Ministry of Home Affairs
10 FEB 2026 4:18PM by PIB Delhi
ECONOMIC DEVELOPMENT OF ISLAND

The Government has taken various steps for the economic development of Island Union Territories (UTs) through strategic interventions across various sectors, including tourism, digital/telecom connectivity, road/air/sea connectivity, infrastructural development, governance reforms, etc.

Tourism has been identified as a key sector due to its multiplier effect in the island UTs. UT of Andaman and Nicobar Islands (UT of ANI) has given the industry status to tourism and variety of tourism activities/initiatives, such as, eco-tourism, cruise tourism, cultural, heritage, adventure tourism

and tourist circuits are being promoted in the islands. UT Administration has made innovative policies for Bird Watching, Caravan Tourism, Luxury Tents, Astro Tourism and Houseboat Tourism.  Further, to fulfil present and future requirement of hotel accommodation, eco-tourism projects at Shaheed Dweep, Aves and Long islands and brownfield project of Megapode resort at Sri Vijaya Puram are being developed on PPP mode. To attract domestic and international tourists, Radhanagar beach at Swaraj Dweep has been certified as Blue Flag Beach and 10 more beaches have also been identified for Blue Flag certification.

Similarly, UT of Lakshadweep has taken a lead to develop first of its kind lagoon villas at Kadmat and Suheli islands on PPP mode. To address the long standing demand of tourists for accommodation at Bangaram island, 50 luxury tented stays have now been made operational.  Thundi Beach at Minicoy and Kadmat Beach have been certified as Blue Flag beaches and two more beaches have also been identified for similar certification.

To leverage the Information and Communication Technology potential and provide its benefits to the citizens, significant steps have been taken for enhancing digital/telecom connectivity in UT of ANI by commissioning of the Chennai Andaman Nicobar Islands (CANI) Optical Fiber Cable Project. Under BharatNet, all blocks, Gram Panchayats, and Tribal Councils have

been connected. Similarly, the Kochi Lakshadweep Islands (KLI) Submarine Optical Fibre Cable Project (KLI-SOFC Project) has connected the mainland (Kochi) and all the inhabited Islands of the UT of Lakshadweep through submarine cable. Redundancy through satellite transponders is also maintained for internet services in both the island UTs.

In view of the importance of air connectivity for the islands, UT of ANI has operationalised a newly constructed modern terminal building of Veer Savarkar International Airport at Sri Vijaya Puram, with a capacity to handle 50 lakh passengers per year. Helicopter services have been made operational from Sri Vijaya Puram to Car Nicobar, Diglipur, Mayabunder, Rangat, Kamorta, Katchal, Chowra, Teressa, Shaheed Dweep, Swaraj Dweep and Campbell Bay to strengthen the inter-island connectivity. Extending the benefits of UDAN scheme to the people of ANI, UT has planned for connecting Diglipur, Car Nicobar and Campbell Bay with 19-seater fixed wing aircraft. On similar lines, UT of Lakshadweep has ensured regular connectivity by flights from mainland (Kochi, Goa and Bengaluru) to Agatti island. For inter-island connectivity, while there are ferry services in island UTs, seaplane services are also planned for implementation at multiple islands in these UTs.

Since, infrastructure lays the foundation for economic development, several infrastructural projects, such as roads, ports, jetties, shipping services, health services, renewable energy, digital governance, etc. have also been undertaken in the island UTs. Further, for promotion of fisheries and blue economy in the island UTs, development of infrastructure & logistics, deep sea fishing, aquaculture, seaweed cultivation, capacity building, etc. has been taken up.

In both the island UTs, the Government has ensured effective and outcome-oriented implementation of flagship schemes with robust monitoring mechanism to advance inclusive growth, livelihood generation, infrastructure creation and improved quality of life. These schemes are being leveraged to strengthen connectivity, drinking water and sanitation coverage, healthcare access, housing, fisheries and MSME livelihoods, women’s empowerment and digital service delivery. This convergence-based approach has improved last-mile service delivery, expanded employment opportunities and enhanced social welfare outcomes, particularly in remote island habitations.

To promote industry and business activities, compliance burden has been significantly reduced with strong focus on Ease of Doing Business, de-regulation,   which   has   also   catalyzed   investment   confidence    and

broadened economic activities. Investment promotion schemes have been formulated to encourage investment by way of providing capital and interest subsidy. 

These initiatives of the Government have led to sustainable economic growth in the island UTs. It is the endeavour of Government of India to make UTs role models of good governance and development.

These initiatives of the Government have led to sustainable economic growth in the island UTs. It is the endeavour of Government of India to make UTs role models of good governance and development.

This was stated by the Minister of State in the Ministry of Home Affairs Shri Nityanand Rai in a written reply to a question in the Lok Sabha.

******

RK/PR/PS/SK/SC