Agatti's economy is relatively small and heavily reliant on traditional livelihoods, though it is subsidized significantly by the Indian central government. The cost of living is unique: while essential goods subsidized by the government are affordable, anything imported from the mainland—from construction materials to packaged goods—carries a high premium due to shipping costs.
The economic backbone consists of agriculture and fishing, with a growing reliance on tourism and public administration. Because of the limited private sector opportunities, the government is the largest formal employer on the island. Future economic development is highly focused on sustainable, eco-friendly tourism, though strict environmental regulations cap the number of visitors permitted at any one time to preserve the island's delicate ecosystem.
