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6/26/2019 Economy of Andaman and Nicobar Islands

Economy of Andaman and Nicobar Islands

The Union Territory of Andaman and Nicobar Islands have immense collection of natural recourses. The fishing industry supports a major portion of the
economy of Andaman and Nicobar islands. Besides agriculture is also a major revenue-earning source for the peasants of that island.

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6/26/2019 Economy of Andaman and Nicobar Islands

The hilly and plain agricultural lands of Andaman and Nicobar Islands are important source of income for the rural people of those areas. Seasonal vegetables,
oilseeds, pulses, pepper, nutmeg, cinnamon are some special crops cultivated there. Even the economy at Andaman and Nicobar Islands to some extent, depends
on the red oil, rubber, palm and cashew nut that are grown here marginally.

Other major industries that are also a big contributor to the Andaman and Nicobar islands economy include its handicrafts industry, minerals and energy
resources. Even tourism is a big industry for the people of Andaman and Nicobar Islands. This land is full of natural beauties and the exotic collection of flora
and fauna, which attract tourists worldwide. The innumerable tourist spots of Andaman and Nicobar islands support the tourism industry of the place.

The island abounds with lush green forests that are a storehouse of some rare variety of floras. As a result the timber industry have come up into the island.
Woodcrafts are very beautiful that also plays a considerable role in the economy of Andaman and Nicobar islands.

Economy in Andaman and Nicobar Islands depend wholly on all the above factors.

Agriculture

Andaman and Nicobar Islands agriculture have come a long way in this important sector though the land available for this purpose is very limited and restricted
within 6% of the total area of this place. Due to the need to increase the fertility of this land, intense measures have been taken to bring scientific revolution to
increase the production capability.

Andaman and Nicobar Islands are full of exotic natural varieties and thus it inspires the peasants of that land to devote themselves into agriculture.Agriculture
crops in Andaman and Nicobar Islands include vegetables, which are cultivated during summer season when the climate is quite favorable for food productivity.
The vegetable cultivation of the Andaman and Nicobar Islands includes vegetables like radish, lobia, brinjal, bhindi, poi, cucurbits, marsa, etc. which are mainly
cultivated in Kharif season.Agriculture of Andaman and Nicobar Island also produces vegetables like knolkhol, tomato, capsicum, cauliflower etc which are
mainly winter season vegetables.

Andaman and Nicobar Islands agriculture has very recently included the hilly areas to promote plantation of different spices crops and fruits. The climatic
condition of this island is favorable for the production of fruits. The hilly areas are best used for horticulture, with cultivation of crops like coconut and fruits
like pineapple, guava, jackfruit, mango, citrus fruits and other special fruits specially found in this island.Agriculture at Andaman and Nicobar Islands also
includes red oil palm, rubber, cashew nut cultivation.

Andaman and Nicobar Islands agriculture is limited within 50000 hectares. Only 12000 hectares of land are flat, which is best suited for agriculture. During the
kharif season paddy becomes the prime field crop. A minimum amount of oilseeds and pulses cultivation could be seen in Andaman and Nicobar Islands.

To give a hike to the production power for the agriculture of Andaman and Nicobar Islands the farmers of these islands are allotted with 2 hectares of paddy and
2 hectares of hilly land.

Banks

The more a country or state economically grows up, the more it feels the need for upgrading its banking
facilities. Very recently the Union Territory of Andaman and Nicobar Islands have developed both commercially
and economically. Therefore a lot of banks have set up their branches to provide the peasants and business
personnels of those islands with efficient banking facilities.

All the Andaman and Nicobar Islands banks provide facilities like money deposition and withdrawal along with
their different terms and conditions. Cash credit facility, home and business loan options are also available to the
natives of the islands by the various banks in Andaman and Nicobar Islands. Short term payable loan, medium or
long term loans provided by different banks in Andaman and Nicobar Islands have inspired the local people to
engage themselves to put up several small industries there. These loans are repayable in monthly, quarterly and
yearly installments.

These banks at Andaman and Nicobar Islands have made the investors interested in different schemes offered by them. Financial assistance provided by these
banks in Andaman and Nicobar Islands are a great help to the needy people. Security of money is a big factor behind the successful representation of several
banks in Andaman and Nicobar Islands.

Following below is the list of the banks of Andaman and Nicobar Islands:

Union Bank

UCO Bank

Punjab National Bank

Allahabad Bank

Vijaya Bank

Bharath State Bank

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Canara Bank

Indian Overseas Bank

Indian Bank

Andaman and Nicobar State Co-operative Bank

These banks provide financial security along with helping hands for the needy people.

Wildlife

The tranquil islands of Andaman and Nicobar are blessed with the magnanimous presence of verdant woods and exotic wildlife which will surely captivate you
in a state of trance. The forestry and wildlife in Andaman and Nicobar islands constitutes a major attraction for the tourists hailing from all corners of the planet.

Approximately 7.171 square kilometers of the terrain is conquered by the vast stretches luscious green forests and falls under the forestry and wildlife in
Andaman and Nicobar islands. These forests receive a lot of rain as they positioned on the equatorial belt. The trees that thrive in this heavenly delectable locale
include tropical evergreen, mangroves and damp deciduous.

As a matter of fact, the regions that come under the forestry and wildlife of Andaman and Nicobar islands are bestowed with the presence of approximately 200
taxonomic groups of plants amongst which only a meager 44 species are gleaned. But a sum total of 29 species are chosen to be utilized in the manufacture of
industrial products. Some of the most important species of plants which epitomizes the forestry and wildlife at Andaman and Nicobar islands are mentioned
below:-

Lal Bombeive
White Chuglam
Sea Mohwa
Pyinma
Badam
Nabbe Red Dhup
Didu or Semul
Didu
Dhup
Bakota
Papita
Lambapathi
Chool
Satinwood
Thikpot
Marblewood

It was the year of1883 that saw the dawn of the Forest department. The forestry and wildlife in Andaman and Nicobar islands has other assets as well like
wildlife that includes Wild Boar, Barking Deer, Spotted Deer, Sambhar, Feral Elephants and many more intriguing creatures. The chief avian creatures of the
Andaman and Nicobar forestry and wildlife include Andaman hawk Owl, Andaman Scops Owl, Andaman Crake, Brown Coucal and many more.

Handicrafts

Andaman and Nicobar Islands handicrafts industry is mainly dependent upon its shell crafts. Shells of Andaman and Nicobar Islands are one of the most
beautiful and fascinating objects found there. They are some unique creatures of these islands which are the assets of these islands.

The shell crafted items of Andaman and Nicobar Islands handicraft industry enjoy high demand worldwide. The abundance of small and big shells in the coastal
areas have tempted the coastal people to indulge themselves in the practice of shell crafting.

Handicrafts industry of Andaman and Nicobar Islands include sea shell handicrafts. Sea shells for their majestic look and colors please the human eyes. The
people in general desire to decorate their homes with various shell crafted items which gives a beautiful look to the house.

Thus Andaman and Nicobar Islands handicraft industry is a major economic recourse for the local people. They collect the sea shells and then clean them and
process them. After processing they cut them in different desired shapes. Mainly shell crafting is done for making decorative items, ornaments, table lamps etc.
The shell handicrafts industry in Andaman and Nicobar Islands is a big economy recourse for the peasants of this land.

But due to the fear of sheer exploitation of these natural recourses the government has banned some of the export business related with this craft.Handicrafts
industry at Andaman and Nicobar Islands also enjoys timber and wood work culture. Andaman and Nicobar Islands boasts of a wide collection of timber species
among whom some belong to rare families. They cut the timbers in different sizes and thus prepare simple objects giving unique forms to them. A variety of
furnitures and other figures are made of these woods. The local craftsmen produce decorative hand made beautiful furnitures which are worthy for interior
decoration.

Fishing Industry

Fishing and pisiciculture has a big market industry in India. India by virtue of its water resources has seen a revolution in this fishing industry mainly after
independence.Industry of fishing is a big earning method for the Indian Territory of Andaman and Nicobar Islands. This industry of fishing in Andaman and
Nicobar islands is a big support to the economy of that island.
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Andaman and Nicobar group constitutes 321 islands, which covers a total area of 8293 sq. km. Water recourse is a big way of earning for the people of this
island and thus many people are engaged in different water related business over here. The island being surrounded by water provides a great boon to the fishing
industry of Andaman and Nicobar islands. As such many other fishing industries have come up with their ventures in this island.

Thousands of crocodiles of different species are seen in these islands. And the numerous species of sea fishes have mainly inspired the Industry of Fishing in
Andaman and Nicobar Islands.

Fishes like mackerels, barracuda, mullets, tuna, sardines and flying fishes are found in abundance there. Other than these, seashells of different sizes and shapes
are also found there. Shark fishing was also a prime focus of this industry.Fishing Industry at Andaman and Nicobar Islands is a major industry but very recently
a ban has been put on the continuous killing of sea sharks.

This ban has finally brought a control over the unnecessary killing of various rare species of fish.

Tourism Industry

A hefty bulk of the revenue earned by the Government of Andaman and Nicobar is through the tourism industry. As a matter of fact, the industry of tourism in
Andaman and Nicobar islandshas boomed and prospered into a completely new and advanced level.

The varied tourist spots in the tranquil islands of Andaman and Nicobar are so spectacular that people from all over the globe gather at least once to witness its
charm and grandeur.

There are an amazing variety of conducted tours that are being organized to give the visitors a local taste of the islands and visit the tourist spots. The most
prominent are :-

Conducted tours by Directorate of Tourism : These are operated from the venues like Andaman Teal House, Port Blair and many more. This constitutes
an important wing of the industry of tourism at Andaman and Nicobar islands. They conduct tours to the delectable locales like Mahatma Gandhi National
Park, Wandoor, Mount Harriet, Water Sports complex and Gandhi Park, Corbyn's Cove Beach, Jolly Buoy, Red Skin Chidiya Tapi and many more. The
vehicle of choice are the bus and the boat.

Directorate of Shipping Services : It is another essential appendage of the industry of tourism across Andaman and Nicobar islands and they conduct
boat tours to Viper Island, Ross Island and Harbor Cruise.

There are also a number of package tours that form an integral part of the industry of tourism of Andaman and Nicobar islands. They include the following :-

Adventure Thrill which is a 6 day and 5 nights package tour and visits spots like Corbyn's Cove Beach, Chidiya Tapu and many more.

Explore Andaman which is another package tour persisting for 5 nights and 6 days. It covers locales like the Viper island and many more.

Others include Historical Adventure, Nature Lovers Trivia and many more.

Livestock

Andaman and Nicobar Islands livestock is one of the mainstays of the economy of the union territory. The farming of livestock in Andaman and Nicobar Islands
is done on the areas that have been cleared from the forest regions of the islands, which have dense vegetation growth of rain forest. Although the total
percentage of lands that are used for livestock is small, yet in some areas of Andaman and Nicobar Islands, livestock thrives despite harsh conditions.

Distribution of Andaman and Nicobar Islands Livestock

Andaman and Nicobar Islands Livestock is not equally distributed over the populated islands of the entire range of islands that comprise the Union Territory of
India. The GIS based analysis produced and published the Central Agricultural Research Institute. have isolated the following islands as having the maximum
livestock at Andaman and Nicobar Islands:

Baratang
Car Nicobar
Chawra
Great Nicobar
Havelock
Kamorta
Katchal
Kondul
Little Andaman
Lon Island
Middle Andaman
North Andaman
South Andaman
Teressa

Livestock Pattern in Andaman and Nicobar Islands

Andaman and Nicobar Islands Livestock is almost exclusively comprised of indigenous varieties (desi), with very few improved varieties available. Cattle,
buffalo, goat and pig form the crux of Andaman and Nicobar Islands Livestock. Buffalo is by far the most numerous of the species comprising livestock at
Andaman and Nicobar Islands. Poultry also forms an important part of the livestock of Andaman and Nicobar Islands.

Livestock Intensification Index of Andaman and Nicobar Islands (LII)

The Livestock Intensification Index is prepared by the Central Agricultural Research Institute to quantify the improvement in the livestock facilities and
infrastructure in the various regions of the Andaman and Nicobar Islands. Four islands were in the top quarter of marks in a scale of 0 - 1.0, keeping in mind the
various factors from arable lands to the other important facilities. Nine ranged between 0.5 to 0.75, and nine more were rated between 0.25 and 0.5. as many as
15 islands were there in the lowest quarter. However, it should be remembered in this context that many islands in the whole of Andaman and Nicobar do not
have a wide arable area, and some have to do for the others.

Mineral Energy

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Andaman and Nicobar Islands Minerals and energy are extremely important part of the economy of the state. Although the mineral wealth of Andaman and
Nicobar is modest, yet the government of Andaman and Nicobar Islands is committed towards making the best of the available resources. As far as the energy
of Andaman and Nicobar Islands go, the state is looking at the possibilities of optimizing non-conventional energy resources along with the conventional forms.

Minerals of Andaman and Nicobar Islands

Andaman and Nicobar Islands minerals and energy resources feature the minerals found in the islands. Andaman and Nicobar islands are not altogether rich in
mineral resources. However, the state is not completely deprived of mineral resources too, and has the potentials of realizing them. The main Andaman and
Nicobar Islands mineral deposits islands are copper and chromite. The government has diversified its mining operations through a process of introducing
privatization in the system, like other states of India. It has not only proved beneficial for the mining and minerals of Andaman and Nicobar Islands, but has also
been a steady revenue earner for the government.

Energy in Andaman and Nicobar Islands

Energy in Andaman and Nicobar Islands is the other important aspect of Andaman and Nicobar minerals
and energy.Andaman and Nicobar Islands energy resources are of extreme importance to the state's
financial infrastructure. Although some thermal energy is produces, yet water energy is the mainstay of the
energy in Andaman and Nicobar Islands. The main source of Energy in the union territory of Andaman and
Nicobar Islands is in the form of Hydro-Electricity. The government of Andaman and Nicobar Islands have
privatized its power sector. The National Hydroelectric Power Corporation Ltd. Is in charge of protecting
the energy resources of Andaman and Nicobar. However, the government of Andaman and Nicobar islands
is committed towards broadening its energy base as well as to conserve its available energy resources.

Natural Resources

The varied natural resources in Andaman and Nicobar islands have metamorphosed the twin islands into
one of the most recurrently visited spots in India. The blanket of forests that extends across the terrain of
Andaman and Nicobar approximately covers 86% of its total land. The forests constitute such an integral
wing of the natural resource of Andaman and Nicobar that it houses 96 Sanctuaries and 9 National Parks
which is a spectacular feat in itself.

The main objective that primed the construction of so many sanctuaries and natural parks was to preserve those species of animals which are hanging
precariously on the verge of extinction. The sanctuaries covers a mammoth area that measures approximately 466.218 square kilometers whereas the national
parks cover 1153.938 square kilometers.

The primary sanctuaries that form a part of the natural resources of Andaman and Nicobar islands are Narcondum Hornbill Sanctuary that procures a suitable
abode for the exotic species of birds known as hornbills, Mahatma Gandhi Marine National Park that houses an entire caboodle of aquatic creatures, Nicobar
Pigeon Sanctuary, South Sentinel Island Sanctuary which houses humongous robber crabs and North Reef Sanctuary which is principally dedicated to the
nurturing of a variety of water birds.

The wild animals that wander about in the verdant forests are Crab Eating Macaque, Terrestrial Shrews, Squirrel, snakes, Dolphins, bats, crocodiles, rats and
many more which add a lot of variety to the natural resources at Andaman and Nicobar islands. These animals attract majority of the tourists with their charm
and constitute the back-bone of the natural resource across Andaman and Nicobar islands.

Last Updated on: 2nd April 2013

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