There is a huge collection of natural resources in the Union Territory of Andaman and Nicobar. Up to some extent, the Economy of Andaman and Nicobar Islands depends on red oil, cashew nuts, palm, rubber in addition to the special crops like oil seeds, pulses, pepper, nutmeg and seasonal vegetables. These things contribute a lot in the economy of this island and hence increases the revenue of the government in return.
The Andaman and Nicobar Islands are rich in biological diversity and so they have good commercial crops such as rubber trees, cashew nuts, and timber. There is also a lot of fishing done in and around the area which also contributes to the economy. The islands are a major attraction of tourists which contribute significantly to their economy.
