India is on the brink of a revolutionary step towards inviting global investors to foster strategic development in its precious islands, Andaman & Nicobar and Lakshadweep. Backed by the Indian Government’s colossal focus on social and infrastructure development, these initiatives are pivotal to India’s growth narrative. Let’s delve into understanding what these projects entail, their significance, and the pathways leading to their realization.
The Island Development Plan by NITI Aayog
An ambitious blueprint designed by NITI Aayog, the Island Development Plan encompasses a broad spectrum of developmental projects. These include improvement in road, sea and air connectivity, promotion of clean energy, resort development, enhancing digital connectivity, and significant advancement in healthcare and education sectors. Furthermore, it envisages extending benefits akin to those in the north-eastern region to businesses. Capital investment subsidies, reimbursement of GST by central government, and interest on working capital loans are some such incentives.
Significance of Andaman & Nicobar and Lakshadweep Islands
Geographically, Andaman & Nicobar Islands command paramount importance for India due to their potential for trade and surveillance. A large port facility, like the proposed one at Campbell Bay, could open vast trade opportunities with ASEAN countries. Recognizing China’s aggressive expansionist policies in the Indian Ocean Region (IOR), there exists an urgent need to develop critical infrastructure and enhance the military base in these regions.
Understanding the Strategic Landscape
With India’s only tri-service command established at the entrance of the Malacca Strait, the largest of the Nicobar islands, significant strategic shifts are foreseen. The island stands as a bulwark against China’s routine submarine deployments and expanding naval bases. The escalating Sino-Indian competition, manifested through the Doklam standoff and China’s alliances with India’s neighboring countries, calls for expediting island development.
Realizing the Potential of A&N Islands
The A&N Islands alone account for an impressive 30% of India’s Exclusive Economic Zone (EEZ) revenue. With vast unrealized potential, bridging the infrastructure gap is paramount. Additionally, harnessing these islands’ ability to become prime tourist hotspots can significantly boost their economies through the creation of numerous forward and backward linkages.
Other Initiatives Towards Island Development
Recognizing the islands’ immense potential, the government identified 26 islands in 2016 for sustainable economic development. Furthermore, initiatives were taken to improve telephone and internet connectivity by laying a submarine optical fiber cable between Chennai and A&N Islands.
The Role of Island Development Agency (IDA)
Founded in 2017, IDA holds the mandate for holistic island development, striving towards community-based tourism while maintaining the unique biodiversity of the islands. Crucial infrastructure projects such as port development, airport upgradation, enhancing satellite bandwidth and helicopter services are being prioritized by IDA. Furthermore, the 2016 Indo-Japan Joint Statement on Bilateral Cooperation envisions the development of ‘Smart Islands’, projecting water de-salination plants and waste management as integral parts of the development scheme.
A Step Towards Sea Connectivity Projects
NITI Aayog is actively working on a comprehensive revenue model to promote sea connectivity projects, particularly targeting ships carrying automobiles, in partnership with the private sector.
The Way Forward
While civil infrastructure development remains non-negotiable, the geo-strategic positioning of these islands highlights the need for upgrading defense capabilities as well. Simultaneously, it is crucial to ensure that such initiatives do not disrupt the ecological balance or local livelihoods, and that comprehensive mechanisms exist for grievance redressal, compensation and rehabilitation.