Andaman & Nicobar Islands

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Indian Subcontinent >> India >> Andaman & Nicobar Islands >> Economy of Andaman & Nicobar Islands

Economy of Andaman & Nicobar Islands

The Union Territory of Andaman and Nicobar Islands has a vast forest resource base with 7,171 sq km of the total area of island covered by forests. A large variety of timber is found in the Andaman group of islands. 40% of the forest is divided as Primitive Tribal Reserve open only to Indians with permits. The rest is a Protected Area for the cultivation of timber for export of matchwood, hardwood and plywoods. Paddy is the main food crop and is mostly cultivated in the Andaman group of islands, whereas coconut and areca nut are the main cash crops of the Nicobar group of islands. Different kinds of fruits such as mango, sapota, orange, banana, papaya, pineapple and some root crops are also grown on the islands.

The islands have reported the occurrence of diatomaceous earth, gold, limestone, nickel, selenite and sulphur. The Indian Oil and Natural Gas Commission is exploring for oil and gas there. The islands have a number of small scale, village and handicrafts units. The number of export-oriented units is also increasing in the agro-processing sectors. The Andaman and Nicobar Integrated Development Corporation has made its presence felt in civil supplies, tourism, fisheries, industries, and industrial financing activities.


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