The sprawling ₹72,000-crore Great Nicobar Project seeks to transform India’s southernmost tip into a “Hong Kong-like” hub by building a transshipment port, international airport, power plant, and township over 166 sq km of biodiverse terrain. Strategically located near the Malacca Strait—a global shipping artery—the site offers immense geopolitical leverage and estimated annual revenues of ₹30,000 crore by 2040. Proponents herald it as a flagship integration of commerce, security, and infrastructure.

Yet critics—notably Congress leadership—decry it as “ill-conceived,” citing threats to the fragile ecosystem, which includes forest, coral reefs, Ramsar-listed wetlands, and the nesting grounds of leatherback turtles. Indigenous tribes, especially the Shompen (a Particularly Vulnerable Tribal Group) and Nicobarese, face likely displacement and health risks. Sonia Gandhi has called the plan a “grave misadventure” that tramples tribal rights and bypasses legal safeguards.

Environmentalists warn dredging and deforestation could lead to irreversible damage in an earthquake-prone region. Former minister Jairam Ramesh alleges the project was "bulldozed" without adequate consultation—highlighting flawed social and environmental impact assessments and potential violations under forest and tribal laws.