As part of the Lakshadweep Union Territory, Agatti is governed under the direct jurisdiction of the Government of India. The President of India appoints an Administrator who oversees the entire Union Territory from the capital in Kavaratti.
At the local level, Agatti operates under a Village (Dweep) Panchayat system, which handles day-to-day civic issues, sanitation, and community welfare. The island is also represented in the Indian Parliament as part of the single Lakshadweep Lok Sabha (lower house) constituency. Public services, including healthcare, education, and infrastructure maintenance, are heavily subsidized and managed by the UT administration.

