Kalpeni is administered as part of the Union Territory of Lakshadweep, which is governed directly by the Central Government of India through an appointed Administrator stationed in the capital, Kavaratti.
At the local level, Kalpeni operates under the Panchayati Raj system. A local Dweep (Island) Panchayat is elected by the residents to manage civic issues, sanitation, local infrastructure, and community welfare. The island is also part of the single Lakshadweep Lok Sabha (parliamentary) constituency, which elects one representative to the lower house of India's Parliament. Law enforcement and public services are managed by the Lakshadweep Police and various governmental departments operating out of Kavaratti and local outposts.
