Sri Vijaya Puram, Feb. 15: Union Minister of State for Minority Affairs and Fisheries, Animal Husbandry & Dairying, Shri George Kurian, while addressing a press conference in Sri Vijaya Puram today, said that the Union Budget 2026-27 clearly reflects the special focus of Prime Minister Shri Narendra Modi on the holistic development of the Andaman & Nicobar Islands. He stated that the Budget, presented under the leadership of Union Finance Minister Smt. Nirmala Sitharaman, has announced several important initiatives that will directly benefit the islands, keeping in view their unique geography as an archipelago, their tribal and coastal population, and their economy based on fisheries, tourism and coconut cultivation.
Boost to Blue Economy and Fisheries
Shri Kurian said Fisheries is the most important sector for the islands. The Budget has proposed that fish caught by Indian vessels in the Exclusive Economic Zone (EEZ) and on the high seas will be made “free of duty”. Additionally, the Customs Act is being amended to extend jurisdiction for fishing activities, and safeguards will be put in place to prevent misuse.
The Minister noted that this will reduce costs for local fishermen and encourage deep-sea fishing in EEZ, especially high-value tuna fishing. This is in tune with the Rules for “Sustainable Harnessing of Fisheries in the Exclusive Economic Zone (EEZ)” recently notified by the Ministry of Fisheries, Animal Husbandry & Dairying, Government of India.
The Budget also allows fish landed at foreign ports to be treated as exports. This will help Andaman-based fishing vessels offload catch at nearby international ports, saving fuel and transport costs.
In addition, the limit for duty-free import of inputs used in seafood processing has been increased from 1% to 3%, which will benefit seafood processing units in Port Blair and support exports.
Support for Coconut Farmers
Shri George Kurian highlighted that coconut is a major cash crop in the islands. The Budget has announced a Coconut Promotion Scheme to replace old and unproductive coconut trees with new, high-yielding varieties. This will help island farmers increase production and income. The scheme also focuses on promoting high-value crops like coconut in coastal areas, which directly benefits the entire Union Territory.
Many coconut plantations in the islands are aged. This scheme provides direct support to replace senile trees with high-yielding varieties, directly increasing the income of island farmers.
Improved Inter-Island Connectivity
To improve connectivity between the islands (e.g. Sri Vijaya Puram to Swaraj Dweep, Shaheed Dweep, Diglipur), the Budget has proposed a Seaplane Viability Gap Funding (VGF) Scheme. Seaplanes are well suited for the Andaman & Nicobar Islands and will help improve inter-island travel, boost tourism and provide faster connectivity for residents, especially for emergency situations.
The Budget has also announced a Coastal Cargo Promotion Scheme to modal shift to coastal shipping. This is expected to help reduce logistics costs and stabilize prices of essential commodities brought from the mainland.
Tourism and Cultural Promotion
A National Destination Digital Knowledge Grid will be set up to digitally document important cultural and heritage sites. This will benefit heritage locations such as the Cellular Jail and Netaji Subhash Chandra Bose Dweep, while also creating employment opportunities for local youth, especially researchers and historians.
The Budget has also proposed a pilot scheme to train tourist guides at iconic destinations. This will help local guides in the islands improve skills and service quality, strengthening the tourism sector.
Focus on Tribal Welfare
The Budget has reiterated the Government’s commitment to ensuring that the benefits of development reach Scheduled Tribes. These measures will support the welfare and development of indigenous tribal communities, including Particularly Vulnerable Tribal Groups residing in the Nicobar district and other areas of the islands.
Shri Kurian said, “Overall, the Union Budget 2025-26 provides focused support to strengthen livelihoods, improve connectivity, promote tourism and ensure inclusive development in the Andaman & Nicobar Islands enabling the people here to contribute to the vision of Prime Minister Shri Narendra Modi for Viksit Bharat.