Great Nicobar Project: Keystone of India’s Indo-Pacific Strategy and Its Maritime Future

• The ICTT on the Great Nicobar Island will rank among the world’s best transhipment terminals after Singapore and Colombo and will cut India’s reliance on foreign ports for container cargo and raise its seaborne trading potential.
• Development of Indian Navy and Coast Guard logistic bases on the island further extends India’s operational distance, with the possibility to aid friendly countries in Southeast Asia while countering China’s increasing footprint in the region.
• The Malacca Strait, a vital maritime chokepoint, has facilitated a significant portion of international commerce, with trade volumes rising from USD 2.8 trillion in 2020 to USD 3.5 trillion in 2024.
• By 2040, Great Nicobar ICTT can be a rival to Singapore as one of the highest logistics centres, reducing India’s reliance upon other nations’ transhipment terminals by a significant margin.

India stands at the crossroads of its past. As economic growth picks up speed, international geopolitics realigns towards the Indo-Pacific, and demands for strategic mastery of the seas are mounting in manifold ways, it is investing heavily in island and coastal development. At the centre of the revolution is the Great Nicobar Island Project, a dream to transform India’s southernmost island into a logistics centre, strategic naval base and economic growth hub.

The project is opposed by the critics on social and environmental grounds. But the geopolitical, strategic, and economic benefits of the project shadow the challenges drastically. This article gives a full rundown of the project, why the project is important, how the project will transform India’s defence and trade profile and why it is crucial to India’s long-term agenda.

Importance of the Great Nicobar Island 

The Great Nicobar Island Development Project is a mega infra push of NITI Aayog and the Ministry of Ports, Shipping and Waterways. The total investment in the project exceeds ₹72,000 crore (approx. $9 billion). The project will turn Great Nicobar Island into a commercial, tourism, and green growth hub and enhance India’s strategic presence in the Indian Ocean Region.

The largest part of the project is the International Container Transhipment Terminal (ICTT) at Galathea Bay. It will be phased, with the first phase 4 million TEUs annually and the final 16 million TEUs. The ICTT, upon commissioning, will rank among the world’s best transhipment terminals after Singapore and Colombo and will cut India’s reliance on foreign ports for container cargo and raise its seaborne trading potential.

The project also entails the construction of a Greenfield International Airport on the island. The airport will be built to support defence and civilian wide-bodied aircraft, with immediate worldwide reach and as a regional centre of trade, tourism, and operations.

In order to fulfil the power requirements of this mega complex, as well as a green approach, a 450 MVA gas-solar hybrid power plant will be commissioned. The power plant will provide an uninterrupted supply of power and also assist in the usage of renewable sources of energy, making the project sustainable according to India’s sustainability strategy.

Furthermore, the construction of new modern urban villages with health facilities, educational institutions, commercial areas, and recreational areas is part of the township master plan. The townships shall be workers’ and residents’ homes, with a harmonious inner environment on the island.

Lastly, to allow the natural attractions and endemic biodiversity of the island to be enjoyed, the project will initiate tourism facilities like eco-tourism, cruise terminals, and luxury hotels. This will establish Great Nicobar as a class tourist destination with a blend of natural attractions and modern amenities.

Components of the Great Nicobar project

Strategic Implications: Resistance to Chinese Hegemony

The String of Pearls and BRI developments have helped China to cultivate its strategic footprint in the Indian Ocean Region (IOR) by making heavy investments in ports like Gwadar in Pakistan, Hambantota in Sri Lanka, and Kyaukpyu in Myanmar. China has developed a series of infrastructure development projects that not only expand its trade capacity but also carry inherent military utility.

There, India also has a rare opportunity in the Great Nicobar Island to enhance its own share. The island provides strategic traction in the guise of a beefed-up naval base for deployment needs and air surveillance, which involves quick response ability in the IOR.

In addition, it is also strategically placed so that it can gain improved maritime watch over vital shipping lanes, such as the Malacca Strait, along which most of the global trade passes. This positions India in a strategic position over important sea lines of communications (SLOCs) so that any disruption to its energy and trade supplies is isolated.

Development of Indian Navy and Coast Guard logistic bases on the island further extends India’s operational distance, with the possibility to aid friendly countries in Southeast Asia while countering China’s increasing footprint in the region. India stands to protect its maritime interests and regional security through this.

Impact on Indian Shipping and Trade Corridors

India has become heavily dependent on foreign ports like Singapore and Colombo for transhipment. Not only is this costing India enormous revenue, but it also leads to increased lead times in shipping, which makes Indian exports less competitive in the international market.

The construction of the International Container Transhipment Terminal (ICTT) at Great Nicobar will completely reverse this scenario. By offering a portion of India’s container traffic at the domestic level, the ICTT plans to save approximately $200–300 million worth of transhipment fees being incurred annually to foreign ports.

Furthermore, the new terminal will reduce Indian exports’ travel time by 3–5 days, rendering delivery faster and more logistically efficient. This will, in effect, transform India into a seaborne hub for Southeast Asia and position it further in global trade networks and decrease dependence on foreign transhipment centres.

The Malacca Strait, a vital maritime chokepoint, has facilitated a significant portion of international commerce, with trade volumes rising from USD 2.8 trillion in 2020 to USD 3.5 trillion in 2024. A large share of Asia’s energy imports, including India’s crude oil and LNG supplies, transits this strategic seaway, making it essential for economic stability and energy security. For India, any disruption or loss of access to the Malacca Strait would undermine its strategic influence in the Indo-Pacific, as the strait links the Indian Ocean with the Pacific and lies close to key regional actors. 

Trade Benefits post project

Tourism and Local Economic Development

Great Nicobar Island, abounding with beaches, rainforests, and high biodiversity, has a vast scope for eco-tourism. Considering the same, the development plan contemplates setting up amenities like five-star hotels, cruise facilities, and marine adventure tourist centres providing water sports and scuba diving facilities. All these destinations are to be designed to host national and international tourists without, in any way, affecting environmental sustainability.

The same economic effect will be colossal. The project would have employed more than 50,000 people by 2040, from the hospitality and construction activities to tourist-related operations and small local businesses.

Further, the project will enhance the island’s infrastructure significantly, with improved health centres, high-class schools, stable internet connectivity, and improved road networks, all of which cumulatively mean improved quality of life for its inhabitants.

Apart from this, island economies will also gain immensely with small-scale industries, fisheries, and handicraft industries enjoying a closer link with large markets and increased tourist inflows, promoting sustainable economic growth on the island.

Environmental Issues and Solutions

Despite being so economically and strategically vital, the Great Nicobar Project has faced criticism from environmental activists because the mass-scale development of infrastructure affects the biodiversity of the island as well as tribal settlements in a negative way. Deforestation, disturbance of the ecosystem, and the effect on island endemic charming species have been claimed.

In order to mitigate these impacts, the government has come out with a number of mitigation measures. They include mainland compensatory afforestation to compensate for the loss of forest cover and minimal displacement of local people through detailed rehabilitation measures that give value to their livelihood and cultural identity.

In addition, utilising hybrid power systems that integrate solar energy and gas fuel to produce electricity is meant to lower the project’s carbon footprint and encourage cleaner energy sources.

Sustainable urban development in other countries, such as Singapore and environmental tours in the Maldives, show that sustainable development is a real possibility if strong environmental plans and conservation measures are adopted. Learning from these success stories, India has thought of finding a balance between nature conservation and development in the Great Nicobar Island.

Regional Diplomacy and Global Relations

The Great Nicobar Project is important in helping India to promote its Act East Policy, enhancing its relations with its most consequential regional and global partners. By contributing to economic connectivity with ASEAN members, the project will help integrate India more deeply into Southeast Asian economic networks, fostering trade and regional interdependence.

From a security point of view, greater infrastructure on the island is a complement to India’s cooperation with QUAD partners, the United States, Japan, and Australia, on Indo-Pacific maritime freedom of navigation and security. The cooperation is in favour of a rules-based international order and against rising challenges in the region.

In addition, India’s forward presence in Great Nicobar will reassure small Southeast Asian nations against increasing Chinese oceanic expansionism. By providing logistic support, training and humanitarian aid, India demonstrates its credentials as a credible security provider of Indian Ocean Rim nations and adds to a lasting Indo-Pacific.

Economic Data and Projections

Refuting Opposition Discourses

The critics of the Great Nicobar Project assert that the massive-scale infrastructure development is mainly for corporate agendas’ interest, potentially causing environmental destruction and destabilisation of the local communities. Issues of concern are usually issues related to deforestation, resettlement, and a probable loss of subsistence livelihoods.

But there are certain countervailing arguments based on the need and necessity of the project. First, geopolitically, Indian national security in the Indo-Pacific needs a strong infrastructure at Great Nicobar to enhance naval presence, maritime surveillance, and security in the area. Second, the project is stupendous in terms of economic dividends via savings in the cost of trade, a fresh tourism industry, and more than 50,000 jobs, which will accrue to the local communities and also to the national economy as a whole.

Apart from that, other nations like Singapore and the Maldives have demonstrated through their global peace models of sustainability that development and preservation need not be at odds with proper regulations and green technology.

The government has prioritised public hearings, open environmental clearances, and visionary development plans to address real issues. The measures ensure economic growth on schedule, but with protection for the environment and local community interests.

India’s Maritime Future

The Great Nicobar Project is much more than an ordinary infrastructural project; it is the fulfilment of India’s vision of being a 21st-century maritime superpower. Strategically situated, state-of-the-art infrastructure, and visions of sustainable growth, the island can turn around the economic and geopolitical terrain of India.

By 2040, Great Nicobar can be a rival to Singapore as one of the highest logistics centres, reducing India’s reliance upon other nations’ transhipment terminals by a significant margin. Meanwhile, by that point in time, investment in indigenous economic growth and tourism can introduce thousands of jobs, high-end facilities, and an enormous boost to islanders’ livelihoods.

As importantly, the project will enhance India’s position in the Indo-Pacific order of security, ensuring sea safety and protection for small nations exposed to regional threats. Through a planned balance of development, diplomacy, and conservation, Great Nicobar will be exemplary of India’s emergence as a vision-oriented and responsible power in the coming decades.

References:

1. _{https://www.impriindia.com/insights/great-nicobar-island-development/}
2. _{https://www.indiatoday.in/india/story/great-nicobar-port-project-controversy-sonia-gandhi-bjp-attack-row-ecology-legal-human-rights-concern-explained-2784301-2025-09-10}
3. _{https://www.thehindu.com/opinion/lead/a-project-of-a-strategic-and-national-importance/article70038531.ece}
4. _{https://organiser.org/2025/09/13/315646/bharat/andaman-and-nicobar-islands/strategic-importance-of-the-great-nicobar-island-project/}
5. _{https://chintan.indiafoundation.in/articles/securing-the-sea-lanes-the-case-for-developing-great-nicobar-island/}

Tejashree P V

Tejashree P V holds a Master’s degree in English Literature from IGNOU and a Bachelor’s degree in Journalism, English, and History from Vivekananda Degree College. A UPSC aspirant, she has a keen interest in international affairs, geopolitics, and policy.