The U.T of A & N Islands is classified as Industrially category ‘A’ backward area. The Administration lays special emphasis on balanced growth of Industries without disturbing the fragile ecology of the Islands. The Industrial Policy of Islands aims at promoting value added Industries based on locally available raw materials for generation of employment opportunities. The Industrial growth in the last two decades has been very slow due to logistics problems, non-availability of raw materials and absence of local markets. Hence the Administration has proposed a number of facilities and incentives for investment promotion in A & N Islands to accelerate the industrial growth of this UT.

UNIQUENESS OF THE ISLANDS

Ø      Rich in Bio-Diversity

Ø     Habitat of rare flora & fauna

Ø      House of endemic animals & Plants species.

Ø      High potential for products that require pollution free environment.

Ø      Vast potential for fishing & marine products.

Ø      Paradise of Eco-tourism.

RESOURCES AVAILABLE

Forest:           

            92% of the area is covered with Forest.

Fisheries(Marine):

            Andaman & Nicobar Islands is bestowed with abundant marine resources having a coastline of 1912 kms. The estimated marine potential of the  Islands is 2.44 lakh tones which remains optimally untapped.

Agro based Products:

            The major agricultural products of the island are Arecanut, Coconut & fruits like Banana, Mango, Papaya etc. Apart from this spices like Clove, Pepper, Cinnamon are also grown.

Industrial Base:

            The Industrial base of the Andaman and Nicobar Islands consists mainly of small scale & tiny industries which are yet to make a tangible dent in their contribution to the national economy. The Industries in the region are mainly timber & agro based. The vast stretches of the sea around the region speak widely about the hidden marine resources, which are yet to be optimally exploited.

Strengths:

Ø      Vast marine potential with 3 lakhs sq. km Exclusive Economic Zone.

Ø      One of the best possible subtropical and tropical climate.

Ø      Nearer to International Trade Corridor indicating potential for containers port.

Ø      Negligible Industrial dispute.

Ø      High Literacy rate.

Ø     No pollution.

Opportunities:

Ø      Increased employment opportunities in International Trade.

Ø      Web for International Trade Corridor.

Ø      Food Products basket of Marine Products for mainland and Exports.

Ø      Excellent opportunities for growing export oriented crops.

Ø      Avenues for starting agro based and food processing Industries.

Present Status:

Ø      Three are 1531 Small Scale Industries in the U.T. of A & N Islands  as on 31.03.2003.

Ø     There are no large scale Industries.

Ø      There are twelve 100% EOU and nine IEMS filed their application with SIA, New Delhi Only two 100% EOUs are functioning i.e. M/s Islander Marine Products in the private sector and M/s Andaman Fisheries Ltd. a joint venture of Govt. exporting frozen fish and shrimps / prawns. M/s Surya Chakra Power Corporation in the private sector is generating 20 MW of power.

Ø      The Department has identified Tourism, IT, Fisheries, Coir and Handicrafts as Focused areas for promotion of Industries in the Islands.

Focused areas for promotion of Industrial Development:

           The broad areas / sectors identified for Industrial Development in the Island are:

Ø     Tourism

Ø      I.T.

Ø      Handicrafts

Ø      High value added Agro Products

Ø      Fisheries

Ø      Coir

Ø      Hydro Carbon Energy

Ø      Shipping Sectors including Transshipment ports

Ø      Service Industry