New Delhi
The proposed Great Nicobar Project is being seen as a major step in strengthening India’s maritime strategy, offering strategic depth, economic leverage, and enhanced influence in the Indian Ocean region, according to a new analysis.
The report notes that while the island project is ambitious and faces significant execution and environmental risks, its core rationale lies in leveraging geography for long-term national advantage. It argues that India’s location along key global shipping routes remains underutilised despite its vast coastline and strategic position.
The project aims to develop Great Nicobar into a major transshipment and logistics hub, reducing India’s dependence on foreign ports such as Singapore, Colombo, and Port Klang. Currently, a large share of India’s cargo—estimated at around three million TEUs annually—is handled through these external hubs, resulting in substantial revenue loss.
The analysis estimates that India loses around $200–220 million annually in port revenues due to this dependency. A fully operational international container transshipment terminal at Great Nicobar could help retain freight earnings, reduce shipping time for exporters, and improve trade competitiveness.
Projected revenues from the project could reach approximately $3.16 billion annually by 2040, against an estimated investment of $7.9–8.53 billion. However, experts caution that employment projections of around 50,000 jobs remain aspirational and depend on successful implementation.
The report also highlights that the initiative aligns with broader government programmes such as Maritime India Vision 2030 and Sagarmala, which focus on port-led development and logistics expansion.
At the same time, it stresses that environmental protection and safeguards for indigenous communities will be critical to ensuring sustainable development.
Analysts say the project represents a significant attempt to reshape India’s maritime infrastructure and reduce reliance on external trade gateways.
