India's Masterstroke in Indian Ocean: Andaman-Nicobar to Become New Trade Gateway

India’s Masterstroke in Indian Ocean: Andaman-Nicobar to Become New Trade Gateway

India is aiming to enhance the strategic position of the Andaman and Nicobar Islands as a key maritime and economic gateway to the Indo-Pacific region. This initiative focuses on securing shipping routes, improving port connectivity, and strengthening the supply chain amid rising global trade disruptions. The agenda was highlighted at a preliminary event for the upcoming ‘Andaman Dialogue 2027’.

More than 15 countries participated in the event, including diplomats, maritime experts, government officials, and industry leaders. They gathered to deliberate on regional security and economic cooperation, emphasizing ways to bolster trade and infrastructure connections in the Indian Ocean and Indo-Pacific areas.

Strengthening Maritime Infrastructure and Trade Connectivity

The main dialogue is scheduled for March 12-14, 2027, on Swaraj Island, Andaman. Discussions will focus on maritime infrastructure development, enhancing trade links, and deepening partnerships across the Indo-Pacific. Commerce and Industry Minister Piyush Goyal addressed the assembly via a recorded message, underscoring the islands’ potential as an economic bridge between South and Southeast Asia.

Goyal stressed the importance of sectors such as trade, logistics, shipping, digital infrastructure, and finance. He also pointed to growing disruptions in global supply chains and technological shifts, advocating for reliable partnerships, secure infrastructure, and resilient regional economies.

Strategic Insights and Future Prospects

Admiral Dinesh K. Tripathi, former Navy Chief and Chairman of the National Maritime Foundation, highlighted the islands’ strategic location near key shipping lanes connecting the Bay of Bengal, Indian Ocean, and broader Indo-Pacific. He called for increased cooperation in maritime surveillance, port connectivity, shipbuilding, repairs, and seafarer training to ensure safe sea routes crucial for international trade and regional stability.

Tripathi reported that India-ASEAN trade reached nearly $128 billion in 2025-26, accounting for about 11% of India’s total trade. He emphasized the economic importance of strong maritime ties with Southeast Asian nations and introduced plans to expand the Information Fusion Centre-Indian Ocean Region, currently involving 16-17 partner countries, to 50 by 2028.

He also proposed enhancing the sharing of commercial shipping information in the Andaman Sea and promoting collaboration among regional ports and maritime industries. Regarding infrastructure, Tripathi referenced India’s Rs 69,725 crore package for shipbuilding and the nearly Rs 12 lakh crore investment announced during India Maritime Week. He underlined the link between naval and commercial shipbuilding, both relying on similar industrial capacities, skilled labor, and supply chains.

The event featured a panel discussion on regional economic cooperation, focusing on transforming shared policy priorities into partnerships with businesses, investors, and institutions. Participants explored risks affecting marine trade routes and critical infrastructure like subsea cables, while emphasizing the need for rules-based, robust regional cooperation networks.

Diplomatic representatives from Fiji, Djibouti, Seychelles, Sri Lanka, Australia, Singapore, Mauritius, Thailand, Vietnam, and the Maldives attended. The preliminary program was jointly organized by the Forum for Integrated National Security (FINS) and the Center for Domestic Economy Policy Research (C-DEP), with senior officials and maritime industry representatives present. The upcoming Andaman Dialogue will likely focus on enhancing practical cooperation to safeguard marine assets and infrastructure that underpin regional trade and economic activities.

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