India’s ‘future fortress’? Andaman Islands’ potential in shipping, trade and logistics

The Andaman and Nicobar Islands could play a larger role in India’s maritime economy, with their strategic location near key shipping routes offering opportunities in ports, logistics, shipbuilding and regional trade.

India is looking to give the Andaman and Nicobar Islands a larger role in its maritime strategy, with their location near the Malacca Strait offering opportunities to strengthen shipping connectivity, logistics infrastructure and regional economic cooperation.

JD Patil, president of FINS, said the islands could become a strategic asset for India as the country seeks to strengthen maritime security and build resilience against disruptions to trade and supply chains. Describing their potential, Patil called the islands a “future fortress” for India.

His remarks came during the curtain-raiser for the Andaman Dialogues, a proposed regional platform that aims to bring governments, maritime agencies, businesses, financial institutions and strategic experts together to discuss maritime resilience, economic cooperation and connectivity.

The first edition of the Andaman Dialogues is scheduled for March 12–14, 2027, at Swaraj Dweep Island, said Dinesh Kumar Tripathi, chairman of the National Maritime Foundation and a retired chief of naval staff.

Why Andaman and Nicobar Islands matter to India’s maritime economy

The Andaman and Nicobar Islands occupy a strategically important position between the Bay of Bengal and the Andaman Sea, close to the western approaches to the Malacca Strait. The strait is one of the world’s key maritime passages, linking the Indian Ocean with the South China Sea and wider East Asian markets.

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This geography gives the islands potential significance beyond defence and surveillance. Better-developed maritime infrastructure could support shipping services, logistics, vessel maintenance and regional connectivity, although turning that potential into commercial activity would require investment and careful planning.

Patil said the islands could help India strengthen its position at the intersection of major maritime routes while supporting cooperation with countries across the Indo-Pacific.

He also highlighted opportunities in shipbuilding, ship repairs and emergency vessel maintenance, arguing that the islands’ location could make them relevant to maritime operators looking for services closer to major shipping routes.

Developing such capabilities could create economic opportunities around ports, logistics services and maritime industries. However, the scale of those opportunities would depend on infrastructure, commercial demand, operating costs and environmental safeguards.

Trade disruption puts maritime resilience in focus

The economic case for stronger maritime infrastructure is closely linked to the vulnerability of global trade to disruptions at sea.

Shipping routes carry energy supplies, manufactured goods and industrial inputs across international markets. Disruptions caused by geopolitical tensions, restrictions on navigation or damage to maritime infrastructure can affect delivery schedules, freight costs, insurance premiums and supply chains.

Patil said that restrictions on navigation and disruptions at sea could have consequences extending beyond shipping, affecting trade, communications, insurance and transportation.

Can the islands become a shipping and logistics hub?

One of the opportunities highlighted by Patil is the potential for the Andaman and Nicobar Islands to develop into a transshipment and logistics hub.

Transshipment involves transferring cargo from one vessel to another, often at an intermediate port, before it reaches its final destination. Efficient transshipment infrastructure can help shipping companies consolidate cargo, optimise routes and connect markets.

India has sought to expand its maritime infrastructure and improve its position in international shipping networks. Developing suitable facilities in the Andaman and Nicobar Islands could add another dimension to those efforts, particularly given the islands’ proximity to important east-west shipping routes.

However, a commercially viable hub would require more than a strategic location. Port capacity, draft and navigational conditions, cargo volumes, connectivity with the Indian mainland, customs efficiency and competition from established regional ports would all influence its prospects.

Patil also pointed to opportunities in shipbuilding, vessel repairs and emergency maintenance. These activities could support a broader maritime services ecosystem if sufficient investment, skilled labour and reliable infrastructure were available.

Maritime security and economic cooperation

The Andaman Dialogues are intended to bring the economic and security dimensions of maritime development into a common forum.

According to the initiative’s concept, discussions will cover international maritime governance, resilient infrastructure, shipping networks, shipbuilding and repairs, undersea infrastructure and financial connectivity.

The platform also aims to encourage cooperation among governments, port operators, shipbuilders, insurers, technology providers, financial institutions and academic researchers.

Tripathi said the dialogue series could help build trust among participants from India and abroad and contribute ideas that may inform future policymaking.

He described India as a maritime nation and said the 21st century could become a maritime century, with the Andaman Dialogues providing a platform to exchange views on issues affecting India and the wider region.