Port Infrastructure and Shipping Industry – Sagarmala Project, SDC, CEZ, etc.

Unlocking Lakshadweep’s Potential as Logistics Hub for India


From UPSC perspective, the following things are important :

Prelims level: Lakshadweep and its geographic features

Mains level: Overhaul of Lakshadweep



  • Lakshadweep’s strategic location near international shipping routes positions it as a potential logistics hub, attracting attention for its economic and tourism prospects.

About Lakshadweep

Location In the Arabian Sea, off the southwestern coast of India.
Geographical Formation Formed by coral activities and have a coral atoll structure.
Formation as UT Formed as a Union Territory of India in 1956.
Total Islands Comprises 36 islands, including atolls, coral reefs, and submerged banks.
Inhibition 10 of the 36 islands are inhabited.
Capital Kavaratti is the capital of the Union Territory.
Area Total area of 32 sq km.

Tourism and Diplomatic Stir

  • Tourist Attraction: PM Modi’s visit to Lakshadweep sparked a surge in interest, with comparisons to Maldives and discussions on Lakshadweep’s tourism potential.
  • Diplomatic Tensions: Comments from Maldivian leaders sparked controversy, leading to online backlash and a shift in focus towards Lakshadweep’s tourism development.

Logistics potential of Lakshadweep

  • Geographical Advantage: Lakshadweep’s proximity to major shipping routes and deep-water ports presents an ideal location for logistics transportation.
  • Existing Infrastructure: The islands have airports, road networks, and plans for container terminals and inland container depots (ICDs) to improve connectivity.
  • Regional Integration: Efforts to establish links with neighboring ports in Sri Lanka and the Maldives aim to boost trade and economic ties.
  • Connectivity Projects: Lakshadweep administration is working to enhance connectivity between islands and the mainland, including plans for roll-on/roll-off ferry services and container terminals.
  • Centuries-old Business Links: Historical ties between Lakshadweep and Mangaluru underscore the importance of business relations, with many residents relying on supplies from Mangaluru.

Government Initiatives and Development Plans

  • Inclusion in Budget Proposal: Lakshadweep featured prominently in the Indian government’s interim Budget (2024-25) proposal, focusing on port connectivity, tourism infrastructure, and amenities across its islands.
  • Gateway Proposal: Suggestions to make Mangaluru the gateway and mainland partner for Lakshadweep’s logistical and tourism needs, leveraging historical and geographical connections.
  • Tech push: The Prime Minister has recently inaugurated Kochi-Lakshadweep islands submarine optical fiber connection (KLI-SOFC) project.

Present Challenges

  • Infrastructure Deficiency: Lack of roads and suitable airports hinder transportation, especially for heavy machinery and equipment.
  • Resource Constraints: Limited freshwater and reliance on diesel generators raise operational costs and limit industrial growth.
  • Isolation: Geographical isolation from the mainland poses logistical challenges and limits business opportunities.
  • Preserving Ecological Balance: Recognizing the ecological significance of Lakshadweep, proposals emphasize sustainable development and eco-sensitive tourism practices.

Benefits of Logistics push

  • Efficiency Enhancement: Logistics optimization can improve route planning, resource allocation, and cost-effectiveness.
  • Flexibility Boost: Adaptive transportation systems can respond to market changes and emergencies efficiently.
  • Sustainability Promotion: Logistics practices can reduce emissions, waste, and energy consumption, contributing to sustainable development.


  • Unlocking Lakshadweep’s logistics potential is pivotal for economic self-sufficiency and growth.
  • Government support in modernizing logistics with technology adoption can enhance efficiency and create job opportunities.
  • Investment in infrastructure and technology is imperative for realizing Lakshadweep’s economic potential and fostering regional development.

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