Lakshadweep: Dive into Untapped Opportunity

Photo by Anuj Chauhan on Unsplash

Lakshadweep, with its captivating beauty and untapped potential, attracts aspiring entrepreneurs. The recent visit of Honourable Prime Minister Shri Narendra Modi and the government’s emphasis on infrastructure development are clear signs of exciting times to come. Lakshadweep, beyond the conventional tourist haven, holds the potential for unconventional small business opportunities.

Now, as a consultant, I often get asked, “Is Lakshadweep the right place for me?” Here’s my honest advice:

Yes, Lakshadweep holds immense potential, but it is important to keep things in perspective. By harnessing the collective creativity and expertise of both islanders and mainlanders, Lakshadweep can unlock its full potential. Here’s what excites me about Lakshadweep:

  • Untapped tourism potential: Lakshadweep has the potential to develop into an ideal destination for luxury cruises, thrilling water activities, and gorgeous beaches. This could create a demand for a variety of services and products, opening the door to new businesses.
  • Government support: The recent infrastructure projects, including high-speed internet and desalination plants, create a supportive environment for businesses.
  • Export opportunities: Lakshadweep boasts unique resources like coconuts, coir, and seafood, offering exciting export potential to mainland India and beyond.

Lakshadweep offers a plethora of lucrative opportunities for small businesses. Here, we explore some unique ideas, categorized for both islanders and mainlanders:


Opportunities for Islanders

Tour Guiding and Local Experiences
  • Offer specialized tours like historical walks, cultural immersion programs, or visits to local fishing villages.
  • Partner with resorts or guesthouses to provide unique experiences for their guests.
  • Consider becoming certified in eco-guiding to promote sustainable tourism practices.
Water Sports Rentals and Instruction
  • Offer equipment rentals for kayaking, paddleboarding, windsurfing, and other water activities.
  • Provide beginner-friendly lessons and guided tours to explore the diverse marine life.
  • Focus on safety and ensure proper training and certification for instructors.
Freelance Services
  • Offer photography services for tourists or businesses, capturing the essence of the Lakshadweep.
  • Provide web design or marketing services to local businesses, helping them reach a wider audience.
  • Offer translation services to assist tourists or businesses needing communication support.
Creative Industries and Entertainment
  • Music and Dance Performances: Showcase Lakshadweep’s vibrant musical and dance traditions through regular cultural performances or workshops, offering tourists a glimpse into the island’s artistic heritage.
  • Local Film Production and Storytelling: Collaborate with filmmakers or documentarians to share Lakshadweep’s stories through films, documentaries, or short videos, fostering cultural exchange and raising awareness about the island’s unique perspective.
Food Stalls and Mobile Catering
  • This opportunity is particularly well-suited for Lakshadweep natives due to their familiarity with local cuisine and cultural preferences.
  • Offer mobile catering services for events and celebrations, featuring traditional Lakshadweep cuisine or fusion dishes.
  • Ensure hygiene and food safety standards are met.
Local Food Production and Distribution
  • Supply fresh fruits, vegetables, and organic ingredients to hotels and restaurants.
  • Partner with local fishermen to source fresh seafood and ensure sustainable fishing practices.
  • Explore opportunities in vertical farming or hydroponics for efficient food production on limited land.
Handicraft Workshops and Export
  • Organize workshops for tourists to learn traditional Lakshadweep crafts like coconut shell carving or mat weaving.
  • Partner with online marketplaces or travel agencies to export Lakshadweep handicrafts to a wider audience.


Opportunities for Mainlanders

Technology Solutions
  • Develop mobile apps for tourists, offering information on local attractions, restaurants, or transportation options.
  • Create online platforms for local businesses to list their services and connect with potential customers.
  • Design translation apps or language learning tools catering to tourists visiting Lakshadweep.
Digital Services and Content Creation
  • Local Content Creation: Capture the essence of Lakshadweep through captivating photos, videos, or blogs, showcasing the island’s culture, nature, and local stories for online platforms.
  • Social Media Management: Offer social media management services to local businesses, helping them build their online presence and connect with potential customers.
  • Web Development and Design: Develop websites or mobile apps for local businesses or tourism-related services, catering to the growing need for digital presence.
Consultancy Services
  • Offer consultancy services in areas like marketing, finance, or sustainable tourism practices, supporting the growth of local businesses. 
  • Mainland expertise in specific fields can be instrumental in empowering local entrepreneurs.
Innovation and Technology Integration
  • Renewable Energy Solutions: Design and install solar power systems or other renewable energy solutions, helping Lakshadweep transition towards a sustainable future and reduce dependence on fossil fuels.
  • Waste Management and Recycling: Develop and implement efficient waste management and recycling systems, addressing a crucial challenge for the island and promoting environmental responsibility.
Wellness and Relaxation
  • Yoga and meditation retreats: Provide personalized wellness retreats in tranquil settings, attracting health-conscious tourists.
  • Wellness centers: Establish holistic wellness centers offering a range of services, from massage therapy to nutritional consultations.
Souvenir Shops
  • Partner with local artisans to sell handcrafted jewelry, woven bags, and other unique souvenirs.
  • Offer personalized items like shell art or custom-designed t-shirts.
  • Consider offering eco-friendly souvenirs made from recycled materials.
Eco-Friendly Products and Services
  • Develop and sell eco-friendly products like reusable water bottles, biodegradable sunscreen, or locally sourced beach essentials.
  • Offer eco-tours focused on responsible tourism practices, such as coral reef restoration or marine life conservation initiatives.
  • Partner with hotels and resorts to provide waste management solutions like composting or recycling programs.
Specialized Services
  • Event planning and management: Organize weddings, corporate events, or private celebrations,
  • Logistics and supply chain management: Provide efficient logistics solutions for businesses in Lakshadweep, overcoming challenges related to remote locations.
  • Property management services: Manage rental properties for tourists or residents, ensuring smooth operations and high-quality service.

Finding comprehensive information about starting a business in Lakshadweep can be challenging due to its unique location and developing infrastructure. However, here are some resources you can utilize to gather information:


Government Websites

Lakshadweep Administration:

MSME (Ministry of Micro, Small & Medium Enterprises):



  • The legal framework for starting a business in Lakshadweep might differ from mainland India.
  • Conduct thorough feasibility studies. Before embarking on any new venture, carefully assess the market demand, resource availability, and potential challenges involved.
  • Be prepared to adapt your business model and offerings based on changing market trends, technological advancements, and the evolving needs of the Lakshadweep community.