Andaman & Nicobar: India’s Strategic and Economic Frontier Toward a $20 Trillion Economy

By Chandra Sekharan

As India marches toward its 2047 economic vision of becoming a $20 trillion economy, new opportunities are emerging from its eastern frontier—the Andaman & Nicobar Islands. Long considered a natural and ecological paradise, these islands now stand at the cusp of becoming a strategic energy and maritime hub.

Economic and Energy Potential

Recent seismic surveys conducted by agencies including the Directorate General of Hydrocarbons (DGH) point toward the possibility of untapped oil and gas reserves in the Andaman deep-sea basin. Given India’s increasing energy needs, this could become a game-changing asset.

Dr. A. K. Bansal, energy economist and former Petroleum Ministry advisor, states:

“The Andaman basin may contain economically recoverable hydrocarbons. Responsible exploration and investment in this region could greatly enhance domestic energy security.”

Strategic Significance

In addition to its resource potential, the islands are located just 150 km from the Strait of Malacca, a global maritime chokepoint. India’s only Tri-Service Command at Port Blair reinforces their role in securing India’s strategic maritime interests in the Indo-Pacific.

India has also been fortunate in preserving these islands. Unlike Kachchatheevu Island, which was ceded to Sri Lanka, and disputes surrounding Narcondam Island, the Andaman and Nicobar Islands have remained firmly under Indian sovereignty.

Vice Admiral (Retd.) Shekhar Sinha notes:

“Andaman & Nicobar is not just an island group—it’s India’s forward base in the Indo-Pacific.”

Conclusion: A Call for Visionary Action

If India acts with foresight—ensuring environmental responsibility, local development, and international cooperation—the islands could become central to India’s growth story and a model for sustainable strategic development.

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