In the Arabian Sea, just off the coast of Kerala, are nearly 36 islands that form the smallest union territory of India, Lakshadweep. Blessed with unmatched natural beauty, its unique coral reef island is an interesting blend of scenic beauty with contemporary facilities. Moreover, calm lagoons and colourful marine life make this tropical paradise a sought-after tourist destination.




Tourism and Hospitality

Coir Fibre Production



Agro based products, and Fish processing.

Schemes by Department of Industries:

Financial assistance to ST/Local entrepreneurs in Lakshadweep: 25% Capital Investment Subsidy for Promotion & development of (SSI) (MSMED) units in the Lakshadweep islands.

Organizing Entrepreneur Development Programme for Promotion of MSME/ SSI units: Training/EDP/Work shop/ Seminar to aware the local entrepreneurs for the Promotion and development of (SSI) (MSME) units in the Lakshadweep islands.

90% Transport Subsidy to Small Scale Industries: The Scheme envisages providing 90% transport subsidy for the transport of raw materials and finished goods between the islands and mainland; and 75% Transport Subsidy on the cost of transport of goods and raw materials between the islands by local entrepreneurs.

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Prime Minister’s Employment Generation Programme (PMEGP): Under this programme, financial assistance is provided for setting up of micro enterprises each costing upto Rs. 10 lakh in service sector, and Rs. 25 lakh in manufacturing sector.

The assistance is provided in the form of subsidy upto 25 percent (35 percent for Special category including weaker sections) of the project cost in rural areas while it is 15 percent (25 percent for Special category including weaker sections) for urban areas.

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SyndRural Self Employment Training Institutes (SyndRSETI): Syndicate Rural Development Trust (SRDT) has opened SyndRural Self Employment Training Institutes (SyndRSETI) in the Union Territory of Lakshadweep, so far to train and provide services to the unemployed youth for self employment. Read more here >

In Summary – Lakshadweep and Entrepreneurship:

The Union Territory of Lakshadweep faces various infrastructural constraints that are standing in the way of its industrialization. But certain industries, mainly those based on the local resources such as agriculture and marine potential, can revive the entrepreneurial spirit of the Islands.

To know more about how Lakshadweep is building a vibrant entrepreneurship ecosystem, click here.

Data Sources for Lakshadweep: 

Note: Policy details provided here are for the purpose of information only. Please verify the latest information from the relevant Government or MSME website of the state. Other data and information is curated from various websites and public documents. In case you have any corrections, additions, or suggestions, please share the same with us, and we’ll be happy to incorporate them here.