**Executive Summary**
This document is an answer given in Lok Sabha on February 10, 2026, addressing Unstarred Question No. 1719 regarding the steps taken by the Government of India for the economic development of the Island Union Territories (UTs). The answer outlines strategic interventions in various sectors, including tourism, digital connectivity, infrastructure, and governance, to foster sustainable economic growth in the islands. The document notes the Government of India endeavors to make UTs role models of good governance and development.
**Key Points / Main Content**
* **General Economic Development:**
* The Government has taken various steps for the economic development of Island Union Territories (UTs) through strategic interventions across various sectors.
* Sectors include tourism, digital/telecom connectivity, road/air/sea connectivity, infrastructural development, and governance reforms.
* **Tourism Initiatives:**
* Tourism identified as a key sector.
* Andaman and Nicobar Islands (ANI) UT has given the industry status to tourism.
* Promotion of various tourism activities/initiatives such as eco-tourism, cruise tourism, cultural, heritage, and adventure tourism.
* Tourist circuits are being promoted in the islands.
* Innovative policies for Bird Watching, Caravan Tourism, Luxury Tents, Astro Tourism and Houseboat Tourism.
* 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.
* Radhanagar beach at Swaraj Dweep has been certified as Blue Flag Beach, and 10 more beaches identified for certification.
* UT of Lakshadweep has taken a lead to develop first of its kind lagoon villas at Kadmat and Suheli islands on PPP mode.
* 50 luxury tented stays have now been made operational at Bangaram island.
* 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.
* **Digital/Telecom Connectivity:**
* Enhancement of digital/telecom connectivity in UT of ANI via the Chennai Andaman Nicobar Islands (CANI) Optical Fiber Cable Project.
* Under BharatNet, all blocks, Gram Panchayats, and Tribal Councils have been connected.
* 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.
* **Air Connectivity:**
* The UT of ANI has operationalized 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 are operational from Sri Vijaya Puram to multiple islands.
* Under UDAN scheme, UT has planned for connecting Diglipur, Car Nicobar and Campbell Bay with 19-seater fixed wing aircraft.
* UT of Lakshadweep has ensured regular connectivity by flights from mainland (Kochi, Goa and Bengaluru) to Agatti island.
* Seaplane services are also planned for implementation at multiple islands in these UTs.
* **Infrastructure Development:**
* Several infrastructural projects have been undertaken, including roads, ports, jetties, shipping services, health services, renewable energy, digital governance, etc.
* **Fisheries and Blue Economy:**
* Development of infrastructure & logistics, deep sea fishing, aquaculture, seaweed cultivation, and capacity building for promotion of fisheries and blue economy.
* **Flagship Schemes:**
* Effective and outcome-oriented implementation of flagship schemes with robust monitoring to advance inclusive growth, livelihood generation, infrastructure creation and improved quality of life.
* These schemes leverage connectivity, drinking water and sanitation coverage, healthcare access, housing, fisheries and MSME livelihoods, women's empowerment and digital service delivery.
* **Ease of Doing Business:**
* Compliance burden significantly reduced, focusing on Ease of Doing Business and de-regulation to catalyze investment confidence and broaden economic activities.
* Investment promotion schemes to encourage investment via capital and interest subsidy.
**Impact Analysis**
**Stakeholder**: Island Union Territories (UTs) of Andaman and Nicobar Islands (ANI) and Lakshadweep
**Impact**:
* Potential for economic growth and development across multiple sectors.
* Improved tourism infrastructure and services.
* Enhanced digital connectivity.
* Better air connectivity and transportation options.
* Increased investment and business opportunities.
* Improved quality of life through flagship schemes.
**Action Required**:
* Implement and execute outlined initiatives and projects.
* Monitor the progress and impact of various schemes.
* Promote investment opportunities in the island UTs.
Key Entities Referenced
Island Union Territories (UTs): The primary geographic area of focus for economic development initiatives.
Ministry of Home Affairs: The Union Ministry responding to the parliamentary question about economic development.
Andaman and Nicobar Islands (UT of ANI): One of the island Union Territories mentioned in the document, specifically related to tourism initiatives and connectivity.
Lakshadweep: One of the island Union Territories mentioned in the document, specifically related to tourism initiatives and connectivity.
Kochi Lakshadweep Islands (KLI) Submarine Optical Fibre Cable Project (KLI-SOFC Project): A key infrastructure project aimed at improving connectivity to Lakshadweep.
GOVERNMENT OF INDIA
MINISTRY OF HOME AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1719
TO BE ANSWERED ON THE 10TH FEBRUARY, 2026/ MAGHA 21, 1947
(SAKA)
ECONOMIC DEVELOPMENT OF ISLAND
1719. SHRI JANARDAN SINGH SIGRIWAL:
Will the Minister of HOME AFFAIRS be pleased to state:
(a) the steps taken by the Government for the economic development of
the Island Union Territory; and
(b) if so, the details thereof?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF HOME AFFAIRS
(SHRI NITYANAND RAI)
(a) and (b): Sir, 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-2-
L.S.US.Q.NO. 1719 FOR 10.02.2026
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-3-
L.S.US.Q.NO. 1719 FOR 10.02.2026
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.-4-
L.S.US.Q.NO. 1719 FOR 10.02.2026
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-5-
L.S.US.Q.NO. 1719 FOR 10.02.2026
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.
******