The Andaman & Nicobar Islands is a union territory of India. Informally, the territory's name is often abbreviated to A & N Islands, or ANI. It is located in the Indian Ocean, in the southern reaches of the Bay of Bengal. It comprises two island groups - the Andaman Islands and the Nicobar Islands - which separate the Andaman Sea to the east from the Indian Ocean. These two groups are separated by the 10° N parallel, the Andamans lying to the north of this latitude, and the Nicobars to the south. The capital of this territory is the Andamanese town of Port Blair.

Economy
Agriculture
A total of 48,675 hectares of land is used for agriculture purposes. Paddy, the main food crop, is mostly cultivated in Andaman group of islands, whereas coconut and areca nut are the cash crops of Nicobar group of islands. Field crops, namely, pulses, oilseeds and vegetables are grown, followed by paddy during Rabi season. Different kinds of fruits such as mango, sapota, orange, banana, papaya, pineapple and root crops are grown on hilly land owned by farmers. Spices, viz., pepper, clove, nutmeg, and cinnamon are grown under multi-tier cropping system. Rubber, red oil, palm and cashew are grown on a limited scale in these islands.

Industry
There are 1,374 registered small scale, village and handicrafts units. Two units are export oriented in the line of fish processing activity. Apart from this, there are shell and wood based handicraft units. There are also four medium sized industrial units. SSI units are engaged in the production of polythene bags, PVC conduit pipes and fittings, paints and varnished, fibre glass and mini flour mills, soft drinks and beverages, etc. Small scale and handicraft units are also engaged in shell crafts, bakery products, rice milling, furniture making , etc. The Andaman and Nicobar Islands Integrated Development Corporation has spread its wings in the field of tourism, fisheries, industries and industrial financing and functions as authorised agents for Alliance Air/ Jet Airways.