Lakshadweep, Andaman & Nicobar Islands Emerge as Key Hubs in India’s Blue Economy Strategy

New Delhi: India's island territories are set to play a larger role in the country's fisheries and Blue Economy ambitions, with the government stepping up efforts to develop tuna fishing, seaweed cultivation and ornamental fisheries in Lakshadweep and the Andaman & Nicobar Islands.

With access to extensive marine resources and strategically located fishing grounds, the two island groups are being positioned as emerging centres for high-value marine fisheries, sustainable aquaculture and seafood exports.

India has a coastline of approximately 11,099 km and an Exclusive Economic Zone (EEZ) of nearly 24 lakh sq. km, with an estimated marine fisheries potential of 58.6 lakh metric tonnes. The fisheries sector supports the livelihoods of nearly 50 lakh fishers and contributes significantly to food security, employment, income generation and export earnings.

India's seafood exports reached approximately ₹73,890 crore in FY 2025-26, highlighting the growing economic importance of the sector. To strengthen its fisheries infrastructure and production capacity, the government has committed ₹39,272 crore through various schemes and programmes since 2015.

Under the Pradhan Mantri Matsya Sampada Yojana (PMMSY), substantial investments have been planned to strengthen fisheries infrastructure and unlock the marine potential of the island territories.

The Andaman & Nicobar Islands have been allocated ₹218 crore, while Lakshadweep has been earmarked ₹175 crore for fisheries development.

The focus on these territories gained further momentum through the Union Budget 2025-26, which outlined measures to promote the sustainable utilisation of fisheries resources in India's Exclusive Economic Zone and the High Seas, with particular emphasis on the two island groups.

Together, Lakshadweep and the Andaman & Nicobar Islands account for nearly 40% of India's EEZ, giving them access to extensive oceanic fishing grounds across the Arabian Sea and the Bay of Bengal.

While Lakshadweep offers favourable conditions for tuna fishing, seaweed cultivation and reef-based livelihoods, the Andaman & Nicobar Islands have considerable potential for marine fisheries, mariculture and value-added seafood production.

Tuna has emerged as a major focus area in the island fisheries development strategy. The surrounding waters are home to commercially important species, including Yellowfin, Skipjack and Bigeye tuna, offering opportunities to expand sustainable fishing and export-oriented seafood production.

In Lakshadweep, a five-year development plan aims to double tuna production to 50,000 tonnes. The strategy includes the introduction of deep-sea fishing vessels and mother vessels, alongside strengthening the traditional pole-and-line fishing system practised by local fishing communities.

In the Andaman & Nicobar Islands, a dedicated Tuna Cluster under PMMSY is supporting fleet modernisation and fisheries infrastructure development. The proposed interventions include new fishing vessels, upgraded fleets and expanded cold storage facilities.

The strengthening of the Marine Products Export Development Authority's (MPEDA) presence in the islands is also expected to improve market linkages and facilitate direct seafood exports.

The broader approach focuses on developing an integrated tuna value chain, covering modern fishing methods, onboard fish handling, cold-chain facilities, processing, canning and export connectivity.

Beyond capture fisheries, seaweed cultivation is being promoted as another promising avenue for diversifying the island economy.

Lakshadweep's lagoon ecosystems and the marine environment of the Andaman & Nicobar Islands offer suitable conditions for seaweed farming. The crop has growing applications in food, nutraceuticals, cosmetics, pharmaceuticals and various bio-industrial products.

Lakshadweep has been identified as a dedicated Seaweed Cluster, with plans to develop cultivation facilities, seed banks, hatcheries and capacity-building programmes.

Developing a reliable seaweed value chain could create additional income opportunities for coastal and island communities while strengthening India's position in emerging seaweed-based industries.

Ornamental fisheries are also gaining attention as a potential high-value segment, particularly in Lakshadweep, which is home to more than 300 reef-associated ornamental fish species.

The development strategy envisages medium-scale rearing units, regulated collection practices and improved market access for sustainably sourced aquarium species.

However, the expansion of this segment will require careful management of coral reef ecosystems and marine biodiversity. Conservation-based practices will be essential to ensure that commercial opportunities do not compromise the ecological balance of these fragile habitats.

For the island fisheries sector to realise its full potential, investments in modern infrastructure and post-harvest management will be crucial.

The proposed development measures cover fish landing centres, ice plants, cold-chain networks, onboard preservation systems, fish aggregating devices, boat-building facilities, processing units and export-related infrastructure.

Improved storage, handling and transportation facilities are expected to reduce post-harvest losses, enhance seafood quality and help fishers secure better market access.

Developing local processing and value-addition capabilities will also be important in ensuring that a larger share of economic benefits remains within the island territories.

The growing focus on Lakshadweep and the Andaman & Nicobar Islands reflects a broader shift in India's fisheries strategy towards high-value production, diversification and greater participation in global seafood markets.

However, the success of this approach will depend on how effectively economic development is balanced with marine conservation. Sustainable fishing practices, scientific resource assessment and the protection of coral reefs and other sensitive marine habitats will remain central to long-term growth.

Greater participation of local fishers, cooperatives and island-based enterprises will also be essential to ensure that the emerging opportunities translate into sustainable livelihoods and inclusive economic development.

With tuna, seaweed and ornamental fisheries gaining prominence, India's island territories could become important contributors to the country's evolving Blue Economy and marine export ambitions.