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General Information

Lakshadweep is the smallest union territory of India consisting of many islands located in the Arabian sea. The total land area of the territory is 32 square kilometer. It is located between 8 º- 12-º 13" North latitude and 71º -74º East longitude, 220 to 440 Kms. away from the coastal city of Kochi in Kerala, in the emerald Arabian sea.

Major Industries


Lakshadweep is one of the world's most spectacular tropical island systems. The union territory of Lakshdweep is committed to the cause of eco tourism and has consciously followed a middle path between tourism promotion and environmental conservation. The efforts to promote tourism have been synchronized with the carrying capacity of the islands. Lakshadweep promotes water sports and has emerged as a water sport destination in the country owing to the vast lagoons around the island.


The fibre is extracted from dry coconut husk through mechanical decortications. Brown fibre is again converted into curled fibre, which is value added product and thinner variety of coir yarn.

There are seven coir fibre factories, seven coir production cum demonstration centres and four curling units functioning under the coir sector in the Government sector. These units produce coir fibre and coir yarn in addition to other coir products like curled fibre, corridor mats and mattings. A number of small coir units are also functioning under the private sector.


The full-fledged handicraft production cum training centre is functioning under the Lakshadweep Industries Department. The centre provides training to a number of people and encourages them to set up their own units.


Fisheries is another important activity in Lakshadweep since the sea around the island is highly productive. The importance of the sector can be gauged from the fact that the islands stand first in the country in per capita availability of fish.

Incentive Package for Industries

It has been proposed that the following incentives will be provided to the entrepreneurs for developing all round industrial development of the island:

  • 25 percent capital investment subsidy
  • Interest subsidy over and above 7 percent on the term loan for putting up any type of industrial activity
  • 50 percent capital subsidy to group activity/Industrial Coop Societies
  • 50 percent capital subsidy for programmes promoted by women entrepreneurs
  • Subsidy of 30 percent Industrial Current Consumption Charge
  • 90 percent transport subsidy for movement of raw materials and finished goods between islands and mainland.
  • 75 percent subsidy for inter island movement of raw materials and finished goods.
  • 50 percent subsidy for setting up of power generation systems for industrial purposes.
  • 50 percent subsidy for setting up of water harvesting system for industrial purpose.
  • Construction of industrial sheds to be given to the local entrepreneurs on nominal rent basis.

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