The Great Nicobar Project has recently received great attention with PM Modi’s visit to Indonesia and Indonesian President Prabowo Subianto expressing support for the development of the Nicobar Port. He expressed that the joint collaboration on development of ports on both sides would ensure that there is a strategic link between Sabang Island and the Andaman and Nicobar (A&N) Islands. During the visit, the two sides signed an agreement to build Sabang port together, in addition to other significant agreements. It is important to reflect on the significance of the Great Nicobar Project, its linkages with Sabang Port and why Indonesia’s backing matters in ensuring overall maritime connectivity and security.
The A&N Islands place India closer to a chokepoint through which world trade and energy shipments pass, i.e. the Strait of Malacca. For much of India’s history, these islands were considered as distant or peripheral spaces. From being penal colonies for the British to being incorporated in independent India, these Islands were largely kept either protected or ignored. However, in recent years, India has positioned itself to utilise this geography strategically.
One of the major maritime infrastructure projects conceptualised is the Great Nicobar project in 2025. India currently routes nearly a quarter of its container traffic through Colombo and Singapore before it reaches global markets. The Great Nicobar project is designed to capture that traffic directly, alongside a parallel push to deepen drafts at existing ports like Vizhinjam, Chennai and Vadhavan so they can also berth larger vessels. This project includes a 14.2 million 20-foot equivalent unit (MTEU) International Container Transshipment Terminal, a Greenfield International Airport (4000 Peak Hour Passengers-PHP), a 450 MVA gas–solar power plant, and a planned township. Last month, Union minister of ports, shipping and waterways, Sarbananda Sonowal stated that the project has reached the final stages of regulatory clearance and construction work would begin in 2028.
The most recent development around this project came from Indonesia. During Modi's State visit to Indonesia, President Prabowo stated that the two ports, Nicobar Port and Sabang Port, can act as strategic gateways that would link the islands and strengthen connectivity across the eastern Indian Ocean. Though this was highlighted for the first time during Modi’s visit to Jakarta in 2018, when the relations were elevated to Comprehensive Strategic Partnership. The two sides also set up a Joint Task Force on Andaman and Nicobar-Aceh connectivity. However, the task force met only twice. With this renewed focus on building this partnership, a third meeting may be held soon.
{{/usCountry}}The most recent development around this project came from Indonesia. During Modi's State visit to Indonesia, President Prabowo stated that the two ports, Nicobar Port and Sabang Port, can act as strategic gateways that would link the islands and strengthen connectivity across the eastern Indian Ocean. Though this was highlighted for the first time during Modi’s visit to Jakarta in 2018, when the relations were elevated to Comprehensive Strategic Partnership. The two sides also set up a Joint Task Force on Andaman and Nicobar-Aceh connectivity. However, the task force met only twice. With this renewed focus on building this partnership, a third meeting may be held soon.
{{/usCountry}}It is important to note the geographical and strategic importance of Sabang Port, at the northern tip of Sumatra, overlooking the entrance to the Strait of Malacca and the Strait of Singapore, and sitting approximately 160 kilometres from India's Great Nicobar project. In June 2026, just weeks before Modi's visit, the Sabang Free Trade Zone and Free Port Authority, known as BPKS, said Sabang's next phase of development would build a marine hub, including shore base services, a logistics centre, bunkering, maritime industry and tourism. The same statement also recognised Indian interest in a Sabang transshipment port which, if developed alongside a stronger Andaman Sea shipping corridor helps both ports, not just one.
The economic benefits of developing these ports include tourism, cruise traffic and diving and wellness travel between Sabang, Port Blair and Havelock Island, alongside cooperation on fisheries and marine resources. This is the blue economy dimension which will get further strengthened with the building of the transshipment terminal. What is also important is the security dimension. Sabang has a natural depth of about 40 meters and can take vessels of around 50,000 tonnes, deep enough to host all classes of naval vessels, including submarines. Recently, Indonesia has agreed to place a liaison officer at the Information Fusion Centre-Indian Ocean Region, which brings together navies and coast guards from across the region to share information on ships moving through the Indian Ocean. This is significant in terms of institutionalising ties, alongside deals signed for BrahMos supersonic cruise missile contract, and finalised India's first-ever export of the Astra air-to-air missile, to Indonesia.
Additionally, for a long time, India viewed Act East policy through the lens of Myanmar being a land bridge to the ASEAN countries. But these efforts have not reaped benefits as expected, especially given that Myanmar has been in a state of ongoing conflict since 2021. Even after elections, the bordering areas are under active conflict. India’s two connectivity projects, the Kaladan Multi-Modal Transit Transport Project and India-Myanmar-Thailand Highway are stalled.
Therefore, the India-Indonesia partnership can act as a booster for Act East Policy. This would certainly complement India’s access to maritime Southeast Asian countries and not replace the importance of Myanmar as a land bridge which is vital to secure access to mainland Southeast Asian countries. And the Sabang-Andaman corridor and the Great Nicobar transshipment hub could offer a sea route and direct connectivity with maritime Southeast Asian nations.
However, there is a long road ahead before the two sides can really reap the benefits of these port projects. Both the port projects have been aspirational and conceptual for a long time. The Great Nicobar project itself is still under construction, and its first phase will take years to complete and its final capacity to be realised only by 2058. Additionally, there are environmental concerns as well that need to be addressed, though it received prior Environmental Clearance under the EIA Notification, 2006. Even the Sabang Port’s infrastructure has lagged, shipping traffic has stayed thin, and foreign investment has fallen short of what planners expected. Despite limitations, what is crucial is that the two sides have recognised the potential of ports, and these efforts and initiatives are in the right direction.
(The views expressed are personal)
This article is authored by Cchavi Vasisht, associate fellow, Chintan Research Foundation, New Delhi.