The Government of India is advancing a large-scale development project on Great Nicobar Island to create a strategic maritime hub [1].
This initiative allows India to increase surveillance and logistics capabilities near the Malacca Strait and the Six-Degree Channel. By establishing a permanent presence in the southernmost part of the Andaman and Nicobar archipelago, India aims to counter the expanding naval presence of China in the Indo-Pacific [1, 2].
The Great Nicobar Island Development Project involves the construction of a military outpost, an airstrip, and port facilities [2]. These assets will be paired with civilian infrastructure to drive regional economic growth [3]. The total cost of the project is estimated at Rs 72,000 crore, which is approximately $8.6 billion [3].
Government planning agencies and the Ministry of Defence have overseen the program, which has been under discussion since early 2024 [3]. While the project received renewed political attention in May 2024, military briefings in May 2026 continue to highlight its importance to national security [2, 3].
The strategic placement of the hub is intended to provide India with significant leverage over critical sea lines of communication. "This is what I call the Hormuz Strait effect," one analyst said [2].
Despite the strategic goals, the project has emerged as a political flashpoint [3]. Debate persists among policymakers regarding whether the primary focus should remain on military utility, or economic development [3].
“"This is what I call the Hormuz Strait effect,"”
The development of Great Nicobar Island represents a shift in India's maritime strategy from passive monitoring to active projection of power. By controlling a hub near the Malacca Strait, India gains a 'choke point' capability that can influence the flow of trade and naval movement, directly challenging China's maritime ambitions in the region.
