Lakshadweep Economy

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Lakshadweep Economy is a simple 1 but it is an open economy for there is a great development scope here. This is due to the fact that this part of India has wealth that has not yet been exploited. The Economy of Lakshadweep depends mainly on the agricultural, fishing, industrial, and tourism sectors. The gross domestic product of Lakshadweep amounted to US$ 60 million in 2004.

The Economy of the union territory of Lakshadweep depends for its revenue on the agricultural sector. The main products that are cultivated in Lakshadweep are coconut and coir. The major crop in the union territory is coconut with the cultivation of almost 26.5 million in 1994- 1995. The coconut production in the islands are increasing each year and the agricultural department exports it all over the country. The other agricultural products cultivated in the union territory are jaggery and vinegar. In Lakshadweep, the total area that is used for cultivation is around 27.50 sq km. The agricultural sector has contributed a great deal to the growth of the Economy in Lakshadweep.

The Economy in the union territory of Lakshadweep also depends for its revenue on the fishing sector for the productivity of the sea around the island is very high. Lakshadweep's fish availability per capita makes it stand 1st in the whole of India. The total production of fish in the island stood at 10000 MTs in 1996. In Lakshadweep, many processing and canning factories, mechanized boats for fishing, and yards for boat- building has been set up. This sector has helped the Economy of Lakshadweep to grow.

The Economy in Lakshadweep depends for its revenue on the industrial sector. The main industry in the islands is the extraction of coconut fiber and its conversion into fiber products. In the coir sector there are 7 government factories for coir fiber, 4 units for fiber curling, and 7 coir centers for production and demonstration. These units manufacture coir fiber, coir yarn, corridor mat, curled fiber, and matting. All these products are sold all over the country and thus this sector generates a lot of revenue for the Economy of Lakshadweep.

Lakshadweep Economy also gets its revenue from the tourism sector for the islands are fast emerging as a hot tourists destination. This has helped to bring in a lot of revenue for the Economy of Lakshadweep.

Lakshadweep Economy has been growing and there is still a lot of scope for development.