However, the comparative isolation of the islands from the mainland, scattered islands, difficult communication system, and heavy reliance on the government for supply of inputs and smaller base of local market are the major constraints in achieving rapid growth. In line with the national economy, during the last decade, the economy of ANI has undergone significant structural transformation.
The dominance of primary sector has declined and the share of the tertiary sector has increased. The reduction in the share of primary sector could partly be attributable to reduction in cutting of forest timber as per the decision of the Supreme Court. Further, there was reduction of agricultural produce due to submerging of land in the wake of the tsunami.