Economic and Financial Developments in Andaman and Nicobar Islands

Deepak Mohanty, ED of RBI is RBI’s regional economy expert. He has been giving speeches explaining economies of North-East region , Goa and now Andaman and Nicobar Islands.

Unlike the other speeches which give an all India perspective, these bring the much unknown and very important regional flavor to the discussion. Then there are useful tables and graphs as well which are difficult to compile otherwise.

He summarises the broad findings of A&N economy :

The comparative isolation of the Andaman and Nicobar islands from the mainland, scattered landscape, difficult communication system, heavy reliance on government departments for supply of inputs and smaller base of local market are the main impediments to the rapid growth of the economy. However, the UT of ANI has immense potential for achieving higher growth aided mainly by extensive marine resources, high literacy rate, conducive work environment and strategic location. In achieving this goal, government efforts need to be supplemented by private initiatives where the banking sector has an important role to play.  This will help in further improving the well-being of masses in the islands.

There are some interesting things like A&N does not have its own legislature hence gets funds from Union Budget:

As Andaman and Nicobar Islands is a Union Territory (UT) without legislature, all allocations for receipts and expenditure are made from the Union Budget. The UT’s primary source of revenue emanates from non-tax receipts, which constitutes more than 80 per cent of revenue receipts. Non-tax revenues have been steadily increasing in recent years. On an average, total revenue receipts to GSDP ratio was around 4.7 per cent during 2007-12. The tax to GSDP ratio in ANI was less than 1 per cent which was far below the all-India average of 5 per cent for all states. Revenue expenditure to GSDP ratio increased mainly on account of the Sixth Pay Commission award. 

Hmmm.. was not aware of this…So union budget has some allocation for A&N as well. Need to scan the Union Budget docs well to understand more such interesting  facts….

Superb stuff from Mohanty..

3 Responses to “Economic and Financial Developments in Andaman and Nicobar Islands”

  1. India as a monetary union…how does it work? « Mostly Economics Says:

    […] Subramanian which shows open states suffered more in the crisis). Deepak Mohanty of RBI has been enlightening us on economies of different states. We have a common central bank in form of RBI. In case of […]

  2. Anup Kumar Mallick Says:

    Dear A / N Islands Adminstration, if local Government help me, I’m build here good economics jone. As a coconut base Industry, Agriculture’ all sector’s,Livestok,etc, whoich thins in main land, same things build here. Thaks, Best Regards, A.n, Island

  3. vikramaditya singh Says:

    Dear sir .im Develop a Farming For got /Breeding and Dairy Businesses and coconut Farm by Bonsai plant and other Vegetable
    Plants Development By source of Solar / Wind power and Bio gas
    3-In 1- Energy sources im Require for Development purpose Govt Land .Issued by Local Government Please send Details By mail.

    Thanks .Best Regards.
    Vikramaditya .Parmar.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: