Eyes on the next global flashpoint: Why India is pouring billions into a remote island |
The strategic importance of Greater Nicobar, the southernmost and largest of the Nicobar islands of India that dominate the Malacca Strait – a critical maritime chokepoint through which 60% of global trade passes – have once again come into focus due to the turmoil in the Gulf of Hormuz amid the ongoing Iran War.
Against that backdrop, the Indian government earlier this month submitted a draft master plan for developing Greater Nicobar island.
The group of Andaman and Nicobar islands (ANI), governed 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.
Located 1300 kilometers southeast of the Indian mainland, these territories are India’s premier maritime and air outpost, offering immense strategic leverage in the Indian Ocean. They act 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.
The 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’s 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. They 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.
The 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.
Great Nicobar Development Plan
The mega plan envisages a $9.9 billion mega-infrastructure project with proposed focus on tourism as the “primary economic driver” of growth. It is being envisioned as a “seaside destination to relax, enjoy theme parks, and wellness tourism in a pristine, unspoilt and protected environment.”
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’s strategic location next to the very crucial and busy sea-lane, the Malacca Strait.
Maritime 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. Situated near the Malacca Strait, these projects aim to reduce dependence on foreign ports (like Singapore or Colombo) for container handling.
The project is expected to span 166 sq km. Of this, around 40% has been set aside as “urbanizable,” with the rest allocated to “special........