With the Strait of Hormuz unstable, India strengthening its grip on the Malacca Strait with a $9.9\u2011billion plan to develop Great Nicobar Island in the Indian Ocean<\/p>\n
The strategic importance of Greater Nicobar, the southernmost and largest of the Nicobar islands of India that dominate the Malacca Strait\u00a0\u2013 a critical maritime chokepoint through which 60% of global trade passes\u00a0\u2013 have once again come into focus due to the turmoil in the Gulf of Hormuz amid the ongoing Iran War.
\nAgainst that backdrop, the Indian government earlier this month submitted a draft master plan for developing Greater Nicobar\u00a0island.
\nThe group of Andaman and Nicobar islands (ANI),\u00a0governed as a single union territory by the central government of India, covers an area of 8,249 square kilometers. The entire island chain consists of 836 islands, including islets and rocky outcrops, of which about 31 are permanently inhabited.\u00a0
\nLocated 1300 kilometers southeast of the Indian mainland,\u00a0these territories are\u00a0India\u2019s premier maritime and air outpost, offering immense strategic leverage in the Indian Ocean. They\u00a0act as a crucial bridge between South and Southeast Asia and as a strategic gateway for India into the Malacca Strait, which is a crucial shipping route connecting the Indian Ocean and the South China Sea.
\nThe Nicobar islands are instrumental for India in monitoring shipping lanes and help to extend its military reach. They serve as a key bulwark of India\u2019s Act East Policy against the growing influence of China in the region. The islands act as a permanent air and naval base, facilitating power projection and rapid military deployment in the eastern and northern Indian Ocean.\u00a0They support comprehensive maritime domain awareness, and also provide a first line of defense against both traditional and non-conventional threats such as illegal fishing, drug trafficking, and piracy.\u00a0
\nThe islands provide 300,000 sq. km of additional Exclusive Economic Zone (EEZ), rich with underwater mineral and hydrocarbon resources. Sustainable power projects are designed to enhance both economic growth and strategic defense capability.<\/p>\n
Great Nicobar Development Plan
\nThe mega plan envisages a $9.9 billion mega-infrastructure project with proposed focus on tourism as the \u201cprimary economic driver\u201d of growth. It is being envisioned as a \u201cseaside destination to relax, enjoy theme parks, and wellness tourism in a pristine, unspoilt and protected environment.\u201d<\/p>\n
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A 450 MVA gas\/solar power plant, and a large township will support the population. There will be conference and convention centers. The already unfolding project includes an international container transshipment port, an airport, power plants, and a township. The plan looks to utilize island\u2019s strategic location next to the very crucial and busy sea-lane, the Malacca Strait.
\nMaritime and port development will enhance connectivity through new jetties and expanding port facilities to accommodate large cargo vessels. It will give boost to tourism, entertainment, and processing clusters along the eastern coast of the island from Galathea Bay in the south to Campbell Bay in the north.\u00a0Situated near the Malacca Strait, these projects aim to reduce dependence on foreign ports (like Singapore or Colombo) for container handling.
\nThe project is expected to span 166 sq km. Of this, around 40% has been set aside as \u201curbanizable,\u201d\u00a0with the rest allocated to \u201cspecial projects\u201d\u00a0including an airport, container port, freight and passenger terminals, defense area, and a green development area where no tree-felling will be allowed. About 129 sq. km of land is expected to come from diverted forest areas.
\nThe project also intends to get the \u201cpopulation to settle here,\u201d\u00a0through both permanent and temporary jobs that will be created.\u00a0 The plan has been drafted for a projected population\u00a0of 336,000\u00a0by 2055. Of this, the local Nicobarese population is expected to grow to about 11,500 from the current 7,500. The annual inflow of tourists to the island by that time is expected to achieve more than a million people. The development will be in phases and will\u00a0finish\u00a0by 2047 in line with the targets of the Narendra Modi-led government\u2019s vision\u00a0\u2019Viksit Bharat\u2019\u00a0(Developed India).
\nHydro Carbons Potential
\nThe ANI Basin is a highly promising, under-explored frontier. India\u2019s Directorate General of Hydrocarbons estimates hydrocarbon potential at 371 MMTOE (Million Metric Tons of Oil Equivalent).<\/p>\n
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Recent 2025 deep-water exploration, particularly in the Sri Vijayapuram-2 well, has confirmed significant natural gas deposits (87% methane). This region is considered a major new source which could significantly boost India\u2019s energy security and reduce import reliance. The basin, extending over 47,000 sq. km, is part of a complex island arc system formed by the convergence of the Indian and Burmese plates.
\nIn 2025, Oil India conducted a three-well drilling campaign that proved commercial gas potential in the Andaman shallow\/deep-water, including at a depth of 295 meters.
\nTo speed up\u00a0exploring and identifying crude oil and hydrocarbon reserves in the Andaman-Nicobar basin, the Indian government has opened up previously restricted areas and is\u00a0encouraging investments\u00a0via the Open Acreage Licensing Program. The discovery\u00a0is crucial for India\u2019s energy transition toward cleaner fuel (methane over coal) and holds the potential to significantly enhance India\u2019s offshore energy assets.
\nThe Strategic Focus
\nThe Great Nicobar project fits well into India\u2019s Act East Policy, launched by Prime Minister Narendra Modi\u00a0in 2014. It is a strategic, proactive, and dynamic shift from the 1991 Look East Policy, focusing on enhancing economic, cultural, and strategic ties with Southeast Asia and the Indo-Pacific region. The policy prioritizes regional stability and the development of India\u2019s northeastern states bordering China, Bangladesh, and Myanmar.<\/p>\n
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While focusing on ASEAN nations, it extends cooperation to Japan, South Korea and the wider Indo-Pacific to counteract regional challenges. A major focus is integrating India\u2019s northeastern states into the broader framework of regional trade and infrastructure, serving as a gateway to Southeast Asia. Key projects in this domain include road and rail links, maritime cooperation with Myanmar, Thailand, Cambodia, Laos, and Vietnam.
\nNew Delhi\u2019s transition to \u2018Act East\u2019 emphasizes rapid implementation, with a focus on maritime security and a rules-based order, particularly in partnership with Indo-Pacific powers.\u00a0The policy has facilitated deeper cooperation, including the sale of BrahMos missiles to the Philippines and maritime exercises.
\nThe Nicobar Islands therefore hold critical strategic importance for India, acting as a \u201cgeostrategic pivot\u201d in the Indian Ocean and a vital maritime watchdog. Indira Point adjacent to the Galathea Bay, India\u2019s southernmost point, is just 145 km north of Indonesia\u2019s northernmost Rondo Island and 160 km from the Western Entrance of Malacca strait.
\nThe 800-kilometer strait is crucial for global supply chains, but its narrowest point, less than three kilometers wide, makes it a risk point for piracy and maritime security, often referred to as the \u201cMalacca Dilemma\u201d\u00a0by nations reliant on it.
\nThe Nicobar Islands secure trade routes, enable power projection, and facilitate regional cooperation against security threats, effectively acting as India\u2019s first line of defense against Eastern maritime threats. The islands enable the Indian Navy to monitor the crucial maritime route.
\nExpanding Military Assets
\nAs the home to India\u2019s only joint services Andaman and Nicobar Command (ANC), the islands enable enhanced, integrated surveillance, anti-submarine warfare, and rapid deployment capabilities. ANI control the \u201carc of power\u201d in the Bay of Bengal, anchored by the ANC. Key assets include major naval and air bases, and missile batteries, designed to monitor maritime traffic. INS Utkrosh (Port Blair) is the primary air station for aerial operations. INS Kohassa (Diglipur) is the northern air base for surveillance. INS Baaz (Campbell Bay) is the southernmost air station overlooking the Malacca Strait. INS Jarawa (Port Blair) houses the floating dock FDN-1. INS Kardip is a strategic naval facility in the Nicobar group.<\/p>\n
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All these are being upgraded with deeper berths, airstrip lengthening and modernization, and surveillance facilities at Campbell Bay, Kamorta, and Hut Bay.\u00a0The new Great Nicobar development plan will support operations of advanced surveillance aircraft and combat jets. It will allow greater time on station for surveillance aircraft (P8I and MQ-9) and shorter reaction time for fighter jets of Rafale and Su-30 MKI class. Indian Navy submarines can operate from the specialized infrastructure at Port Blair.\u00a0
\nThe ANC oversees Army infantry brigades with armored columns, Navy missile corvettes, amphibious warships, and patrol vehicles. Rutland Island is frequently used for joint amphibious assault exercises.
\nThe existing military areas of the Indian Navy and Air Force (IAF) are being expanded to house more permanent assets. The runways at Diglipur and at Air Force Station Car Nicobar are being lengthened, and airfield assets including hardened shelters will allow sustained operations. The National Green Tribunal (NGT) has cleared the mega-infrastructure project, citing it as of \u2018strategic importance\u2019.
\nThe Way Ahead for Mega Plan
\nThe Great Nicobar project faced scrutiny due to significant environmental impact, large-scale forest land diversion, and potential effects on local biodiversity and tribal communities. But the strong leadership of Prime Minister Narendra Modi and a clear development strategy have allowed work to progress.<\/p>\n
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The Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO) is leading these efforts, focusing on public-private partnerships to develop international-standard tourist resorts and eco-tourism facilities. The focus remains on accelerating growth while aiming to manage the ecological sensitivities of the region.
\nThe military airstrips in the ANC including Car Nicobar, Campbell Bay, and Diglipur have been designated for dual\u2011use activation to expand civilian air services across the archipelago, thus reflecting a model of symbiotic civil\u2011military growth. A phased transformation of the ANC into a strategic outpost would strengthen India\u2019s image as a preferred security partner among Indian Ocean littorals. A Su-30 MKI with single air refueling will be able to reach the South China Sea when operating from Car Nicobar. Land based BrahMos missiles will also be positioned.
\nNew Delhi\u2019s engagement with its neighbors through the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), an international organization of seven South Asian and Southeast Asian nations, alongside provision of operational turnaround facilities to friendly navies and the undertaking of coordinated patrols (CORPATs), can further promote regional order and cooperation.
\nIndia\u2019s development of the ANI have progressively emerged as a pillar of its maritime diplomacy in the eastern Indian Ocean Region.\u00a0The strategic advantages are phenomenal. Surveillance of extra-regional warships, deep-sea fishing fleets, \u2018dark shipping\u2019, illegal activities, and research vessels along key chokepoints is essential and the ANI offer distinct advantages in facilitating this task. Similarly, the emerging hydrocarbon potential has to be exploited and secured.
\nANI could become a multifunctional node for container trade, cold\u2011chain exports, maritime services, and digital commerce, creating steady demand for feeder services, warehousing, and skilled local employment, while deepening India\u2019s integration with Bay of Bengal littorals and ASEAN supply chains.
\nThe completion of the Chennai-ANI submarine cable (CANI), a 2,300 km high-speed fiber-optic link, has laid a strong foundation for sustained digital connectivity and future growth.\u00a0In all this, the interests of the several tribal groups that the Andaman Islands are famous for has been looked into.
\nWith increasing Chinese Navy presence in the Indian Ocean Region, India requires enhanced and sustained naval and air presence and stringent access monitoring at the Malacca Strait, staged through the ANI, to enable timely responses to potential military build-ups. The new infrastructure will allow it to integrate the islands more deeply into the national security architecture, and reinforce the country\u2019s maritime posture in the Indo-Pacific.<\/p>\n
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A permanent fighter squadron must be positioned at Great Nicobar as early as possible. Lessons from recent wars also indicate the need to set up strong air defenses on the major islands with SAMs and other defenses. India must position larger numbers of air and ground launched cruise missiles.\u00a0\u00a0
\nThe ANI are the most strategically located islands anywhere in the world. With focused development and military empowerment, these islands\u00a0could\u00a0emerge as India\u2019s strategic fulcrum against misadventures by India\u2019s northern neighbor. Land-based air power has its own operational advantages and lesser risks. Major infrastructure development of the ANI will tilt the strategic balance further towards India.<\/p>\n","protected":false},"excerpt":{"rendered":"
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