The picturesque union territory of Andaman and Nicobar Islands (ANI) in the Bay of Bengal covers 0.25% of the national geographical area but accounts for only a fractional share of 0.03% of the national population. This explains why ANI has the lowest population density of 46 per square kilometer as against 382 at the all-India level. The high literacy rate and per capita income make ANI one of the leading UTs in India in terms of socio-economic development.
The bio diversity and the large number of attractions in ANI make it a prime tourist attraction. The islands have tremendous geostrategic importance. ANI faced great challenge to rebuild its infrastructure and connectivity in the aftermath of the tsunami that caused large scale damage to the islands in December 2004.
ANI has significant potential for growth in different sectors such as tourism, energy, shipping, minerals & mining, livestock and fishery. Owing to the fragile ecology of the islands, a balanced growth of industries is required in the islands. Due to various issues such as logistics problems, the unavailability of raw materials and absence of local markets, the industrial growth has been very slow for the past two decades. Hence, it is very important to promote the industries base on locally available raw materials in ANI for the generation of employment opportunities.
Extensive marine resources, high literacy rate, conducive work environment and strategic location provide significant potential for growth to ANI. To achieve such growth, it is of utmost importance to supplement government efforts with private initiatives.
The Confederation of Indian Industry (CII) strongly feels that a concerted effort needs to be carried out, in order to highlight growth opportunities and create an adequate understanding and appreciation of the business environment in ANI by highlighting the key enablers. This report was prepared by CII against this backdrop.