Agriculture is the backbone of Lakshadweep’s economy; the major products being coconut and coir. Coconut fibre extraction and conversion of its fibre products is the main industry in the islands. Most of the people are dependent on these industries for their livelihood.

The other major activity here is fishing. Immense potential for development in fisheries has resulted in the setting up of boat-building yards, canning and processing factories and adoption of mechanized fishing boats. The islands stand first in the country in per capita availability of fish. People of Lakshadweep are often commended for their honesty, and the absence of crime in the islands is laudable.