The Great Nicobar Project: A Key Economic And Strategic Initiative In Indo-Pacific

Policy Update
Ameya Satam

Background

India has recently taken a step towards strengthening the Indo-Pacific security by initiating the Great Nicobar Project. The Great Nicobar Project is located in the Andaman & Nicobar Islands, a total area of 166.10 sq. km is allocated for this project which holds the revenue land of 35.35 sq. km and the forest land of 130.75 sq. km.

Due to its location connecting Southeast Asia through Andaman Sea, it has been a strategic choice to be chosen in the Indo-Pacific region. The value of this strategic project is ₹81,000-crore, which will help India to establish a strategic centre in the Indo-Pacific. Under the planned project, an International Container Transhipment Port (ICTP), an international airport, a 450 MVA Gas and Solar powerplant, and a modern township will be built. All these infrastructures will transform the location into an entry point for the Indo-Pacific. This project is designed to be completed in 3 phases.

No. of Phases	Expected Period for Completion	Area to be Covered
Phase – I	2025-2035	72.12 sq.km
Phase – II	2036-2041	45.27 sq.km
Phase – III	2042-2047	48.71 sq.km

Table 1.1 Phase Division

Source: Press Information Bureau, 2026

This project’s primary geostrategic objective is to counter China’s ‘String of Pearls’ strategy which encircles India, while its economic objective is to reduce India’s dependency on foreign countries for transhipment. This project’s execution will secure India’s regional power in the Indo-Pacific region and is projected to handle 14.2 million TEUs (20-foot equivalent units) every year for transhipment which is expected to compete with Singapore’s Port (Tanjung Pelepas) in transhipment. China’s bolstering footprint in the Indian Ocean Region (IOR) induces a direct security threat to India. Therefore, it is necessary for India to build the ‘Great Nicobar Project’ in the Indo-Pacific to demonstrate its presence in the region.

Strategic Importance

China is developing infrastructure on Myanmar’s Great Coco Island, only 16 km from Landfall Island in the northern Andaman chain (Viswanathan, 2026). This consists of an airport on the Great Coco Island and on the Little Coco Island, a huge building, and two helipads along with a road that links to the coast.

Chinese radar and other equipments are installed which can be used by China to gain important information through a signal intelligence (SIGINT) collection facility. SIGINT listening stations are located on Manaung, Hainggyi, and Zadetkyi in Myanmar as they are situated in the Andaman Sea (Pukhrem, 2023). China closely monitors Indian space launches from these islands. Fishing activities and mapping by China have been noted in the Bay of Bengal. China’s Yuan Wang spy ships and submarines have been observed to be present at various times in the Indian Ocean Region which necessitates India’s presence in the region as well.

Fig. no.1.1: This map justifies the “Security First” approach of the Great Nicobar project—it’s about watching over the water where the presence of others is already growing. Source: Map generated by the author using Microsoft Power BI datasets.

On the other side, in the Indian Ocean, China has secured port access in Sri Lanka, Pakistan and Djibouti which strategically encircles India that threatens its national security. China has already been deploying submarines and surveillance ships which map seabeds and gather critical intelligence. India’s “Necklace of Diamonds” strategy to counter the ‘String of Pearls’ on the western side of the Indian coast is stronger than its eastern coast.

India’s plan to build the Great Nicobar Project to address this situation seems perfect, as it will support India in protecting its eastern sea trade routes and ensure India is always ready for any changes in the maritime environment. Moreover, the development of the infrastructure on the Great Nicobar Island will upgrade the facility for the aircrafts and naval assets to remain stationed on the location for a longer period of time.

Fig.no.1.2: The map demonstrates that Great Nicobar is not an isolated project but part of a broader security architecture (including Sabang, Changi, and Duqm) planned to provide India with strategic reach across the Indian Ocean. Source: Map generated by the author using Microsoft Power BI datasets.

This Great Nicobar Island Project will ensure India’s presence in the region to counter China’s activities which may threaten India’s national security. Former Air Marshal R. Nambiar argues that the real value of Great Nicobar Island is that it allows India to deny potential rivals control of the region, noting that its location “allows us to deny any other power the ability to operate in this area with impunity” (Deutsche Welle, 2026).

The closeness of the Great Nicobar Island to the Malacca strait provides the potential to keep a close watch on one of the main routes of global trade, which is also used by China for importing 80% of the oil (Mukul, 2025). Ghosh (2024) also points out that this project will restrict the illegal activities such as unregulated and illegal fishing, human and drug trafficking, and entry of refugees (Rohingya) from Myanmar’s Rakhine State.

Economic Importance

India’s Vizhinjam port on the western coast acts as a transhipment port for the major shipping lanes from the Persian Gulf and Red Sea towards the Malacca Strait. However, India lacks a transhipment port on the eastern coast to handle cargo for the reverse routes. Consequently, 75% of transhipment carrying cargo goods are transferred from the cargo to smaller vessels in Colombo and Singapore to the Indian ports. An extra $80 to $300 is spent on Indian products in every container for handling and extra 3 days are taken up in shipment.

This location also connects the world’s biggest manufacturers (Japan, China, South Korea, Taiwan), with 25% of global trade navigating the Malacca Strait area but India misses the benefit from this trade because it lacks a transhipment-capable port in the region (Zerodha, 2026). Consequently, India loses a significant amount of revenue.

In this situation, the Great Nicobar Project will prove beneficial for being a transhipment port located in the eastern coast of India. It is located around 50 km north of the international shipping lane through the Six Degree Channel. In the future, it is expected to attract transhipment traffic from the Malacca Strait’s trade corridor.

Fig. no.1.3: The red “Influence Zone” demonstrates that India can capture transhipment traffic that currently bypasses its mainland ports, potentially saving hundreds of dollars per container. Source: Map generated by the author in QGIS from primary calculations.

The Great Nicobar Project is also a kind of response to China’s Belt and Road Initiative (BRI) as Myanmar, also plays a crucial role in the BRI. Srikanth Kondapalli, a professor of Chinese studies at Jawaharlal Nehru University, explained to DW that “the first reason behind the planning of the Great Nicobar Project is economic while strategic is second” (Deutsche Welle, 2026). The project is intended to reduce the 20-30% dependence on foreign ports for transhipment and boost trade by regional rerouting.

The Island’s natural landscapes will attract worldwide tourists, amplified by an international airport, growing air connectivity and tourism to the nearest tourist destinations like Senang City, Phuket Island and Langkawi island. Currently, the Port Blair airport is used by around 1.8 million passengers for travelling every year.

It is projected that this new airport of Great Nicobar Island will be used by at least 1 million passengers to travel, which may grow up to 10 million passengers per year after opening (Press Information Bureau, 2026). The township plan will foster the building of structures required in a town like schools, colleges, hospitals, hotels, etc. These structures will support the economic growth of the region. Constructing a power plant will underpin this development.

According to the government’s projection, Rs 30,000 crore could be made by the port as a revenue every year by 2040; it will also generate 50,000 jobs in the region. The government is expecting the project will advance the island into an “economic hub” for the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) region.

Challenges

The time projected for the completion of the project is around 22 years (2025-2047).
The first phase is totally funded by the government but next phases need investors. Some companies have expressed interest in investing, but no official agreements have been signed yet. If the project does not get the required investments on time then, it may delay the completion of the project and the infrastructure built in the first phase will have to function alone without other essential infrastructures. This situation may also affect the strategic capability of the location.
Energy logistics to the remote island.
Preservation of the island’s natural habitat.
To protect the indigenous culture and land of the tribal people (Shompen and Nicobarese tribe) on the island.
Earthquake prone zone.
Protection of the nesting site of the giant leatherback sea turtle.

Measures Taken

Environmental Impact Assessment Committees are formed.
Three independent Monitoring Committees are going to oversee pollution, biodiversity, and the welfare of the Shompen and Nicobarese communities.
An Overarching Committee has been formed to serve as a central mechanism for oversight, monitoring, and inter-institutional coordination.
The 48.65 sq. km of forest which was taken over in the Phase-1 will be reforested in Haryana on the 97.30 sq. km of land as compensation.
Planted 2.4 million trees under “Ek Ped Maa Ke Naam” on the Andaman Nicobar Islands.
Compensated 76.98 sq. km of new tribal reserve land while using only 73.07 sq. km of the original tribal reserve land for the project.

Recommendations

Initially, building a gas and solar-based power plant is essential for constructing other structures such as ICTT, Greenfield International Airport, and township. These energy sources power the transport and tools that are required for infrastructure construction.
Planting trees under “Ek Ped Maa Ke Naam” is a good initiative for ecological balance to be maintained in the region but after planting the trees they should also be cared for to prevent premature death.
Reconsider the location for afforestation instead of selecting Haryana, the government can try other locations which can be very near to the Great Nicobar Island.

Conclusion

Compensating 76.98 sq. km of tribal reserve land while using only 73.07 sq. km of it, this move is also a trust building move among the indigenous tribals. This move ensures the protection of indigenous tribal people’s rights and culture. The government should rethink afforestation on Haryana’s land as it is far away and it will not benefit the environment of Andaman & Nicobar Islands.

The Great Nicobar Island is an earthquake-prone zone, the construction of infrastructure might slow down and take longer time than projected if an earthquake or tsunami-like natural events occur. The projected time for completing the project is also a major concern as China already has an upper hand because it has certain infrastructures already present on the Coco Islands, which are not far from the Great Nicobar Island. However, Phase-1 of the project prioritizes the construction of transhipment port, which is a very strategic move. This also allows naval assets to be installed in the region before other infrastructure development and helps India to keep a close watch on China’s activities in the area.

Along with this, transhipment will also begin before the full completion of the project which will benefit India economically. Furthermore, it will address the structural gaps in the maritime logistics of India. On top of this, airport construction will provide aerial support in carrying out naval operations through aircrafts such as P-8I. Organizations like QUAD and ASEAN can also participate in naval operations at this location, which may make it a hotspot of geopolitics in the Indo-Pacific region.

References

Viswanathan, K. L. (2026, May 5). Great Nicobar Project: Balancing national security and environmental responsibility in face of looming Chinese presence. South Asia Monitor. https://www.southasiamonitor.org/indo-pacific-china-watch/great-nicobar-project-balancing-national-security-and-environmental

Press Information Bureau. (2026, May 1). Great Nicobar Project: Strategic importance, sustainable development. Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2257174&reg=3&lang=1

Krishnan, M. (2026, May 6). How India uses remote island to show strength against China. DW. https://www.dw.com/en/how-india-uses-remote-island-to-show-strength-against-china/a-77064418

Pukhrem, S. (2023, May 4). PacNet #33 – Myanmar’s Coco Islands: A concern not to be ignored. Pacific Forum. https://pacforum.org/publications/pacnet-33-myanmars-coco-islands-a-concern-not-to-be-ignored/

Pandit, R. B. (2026, May 4). Great Nicobar project anchors India’s maritime rise. StratNews Global. https://stratnewsglobal.com/india/great-nicobar-project-anchors-indias-maritime-rise/

Mukul, S. (2025, September 10). The Great Nicobar Project aims to create India’s Hong Kong. Why the row? India Today. 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

Sen, G. (2025, October 20). India’s Great Nicobar Project faces uphill climb. South Asian Voices. https://southasianvoices.org/ec-m-in-r-great-nicobar-challenges-10-20-2025/

Ghosh, N. (2026, April 30). Is India’s Great Nicobar gambit an asset or liability? Global Asia. https://www.globalasia.org/forum/is-indias-great-nicobar-gambit-an-asset-or-liability_nirmal-ghosh

Zerodha. (2026, February 25). What’s behind the Great Nicobar megaproject? The Daily Brief. https://thedailybrief.zerodha.com/p/whats-behind-the-great-nicobar-megaproject

Lintner, B. (2023, June). What is China really up to in the Coco Islands? Global Asia, 18(2). https://www.globalasia.org/v18no2/feature/what-is-china-really-up-to-in-the-coco-islands_bertil-lintner

About the Contributor

Ameya Satam is a Research & Editorial Intern at IMPRI specializing in International Relations and Strategic Studies. He completed his post-graduation in International Relations at Sikkim University, focusing on Indo-Pacific geopolitics and India–US cooperation, and is dedicated to analyzing regional security frameworks to inform evidence-based policy discourse.