A total of 48,675 hectares (120,280 acres) of land is used for agriculture purposes. Paddy, the main food crop, is mostly cultivated in Andaman group of islands, whereas coconut and arecanut 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 such as pepper, clove, nutmeg, and cinnamon are grown under a multi-tier cropping system. Rubber, red oil, palm, noni and cashew are grown on a limited scale in these islands.

There are 1,374 registered small-scale, village and handicraft 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. The Islands have become a tourist destination, due to the draw of their largely unspoiled virgin beaches and waters.

Andaman and Nicobar Islands are developing into a major tourism hub with exotic-looking beaches and pristine islands having equally exotic names, wonderful opportunities for adventure sports like snorkelling and sea-walking.

A statue of Vinayak Damodar Savarkar at Cellular Jail.

In Port Blair, the main places to visit are the Cellular Jail, Mahatma Gandhi Marine National Park, Andaman Water sports complex, Chatham Saw Mill, Mini Zoo, Corbyn's cove, Chidiya Tapu, Wandoor Beach, Forest Museum, Anthropological Museum, Fisheries Museum, Naval Museum (Samudrika), Ross Island and Viper Island. Other places include Havelock island famous for Radhanagar Beach, Neil Island for Scuba diving/snorkelling, Cinque island, Saddle peak, Mt Harriet and Mud Volcano. The southern group (Nicobar islands) is mostly inaccessible to tourists.
Indian tourists do not require a permit to visit the Andaman islands but if they wish to visit any tribal areas they need a special permit from the Deputy Commissioner, Port Blair. Permits are required for foreign nationals. For foreign nationals arriving by air, these are granted upon arrival at Port Blair.

According to official estimates, the flow of tourists doubled to nearly 300,000 in 2012 from 130,000 in 2008–09. The Radha Nagar beach of Andamans was chosen as Asia’s best Beach in 2004.