Puducherry

Key Sectors

• In February 2026, the Government of India launched a CBDC-based food subsidy distribution pilot under PMGKAY in Puducherry to strengthen transparency and efficiency in subsidy delivery. Under the pilot project, food subsidies will be credited directly to beneficiaries through programmable Central Bank Digital Currency (CBDC) tokens redeemable at authorised Fair Price Shops (FPS).
• The PY‑SHORE project, a Rs. 1,433 crore (US$ 160 million) initiative has been proposed to strengthen the coastal resilience and blue economy of Puducherry by 2029. It includes construction of a southern reef, rejuvenation of mangroves and sand dunes, modernisation of fishing villages and harbours, development of an eco-cruise terminal and marine-plastics management, and efforts to boost eco-tourism and sustainable livelihoods.
• In 2024, domestic and foreign tourists' arrival in Puducherry stood at 2.12 million and 0.018 million tourists, respectively.
• The Puducherry Budget 2025-26 raises agriculture outlay to Rs. 216.87 crore (US$ 24.2 million) and introduces major farmer-support measures including higher seed subsidies, MSP implementation under PM AASHA, full-premium crop insurance for coconut and Rs. 2,000 (US$ 22.38) annual rain relief for registered agricultural labourers, while advancing the Union Territory’s goal of achieving fully organic farming under Vision 2047.
• As per the Lieutenant Governor Speech 2025:
  • A Rs. 750 crore (US$ 87.87 million) project to repair, renovate, and restore 78 tanks in Puducherry has been formulated, aiming to enhance surface water storage and groundwater potential, and will be submitted to the Ministry of Jal Shakti for 90% central grant under the RRR scheme.
  • The Minimum Support Price for paddy increased from Rs. 1,868 (US$ 21.92) per quintal in 2020-21 to Rs. 2,300 (US$ 26.99) per quintal in 2024-25, while the net sown area and gross-cropped area in Puducherry also grew steadily during this period.
  • For 2025-26, the Government of India has allocated Rs. 15.82 crore (US$ 1.85 million) to Puducherry under Centrally Sponsored Schemes, including the National Mission on Natural Farming (NMNF).
  • Under the Sub-Mission on Agricultural Mechanization (SMAM), Rs. 7.24 crore (US$ 869,361.45) was utilized since 2021-22 to benefit 440 farmers with various machinery, and Rs. 4.65 crore interventions are planned for this year.
• Agriculture is one of the most important occupations for the people of Puducherry. About 45% of the total population depends directly or indirectly on farming. The main crop of this territory is paddy. The UT is one of the largest producers of bananas, flowers, tapioca, coconut, groundnut, and sugarcane.
• Puducherry is an attractive tourist destination with beaches, French architecture, churches, and temples. Domestic tourists arrived from Bengaluru, Hyderabad, Kerala, Chennai, Odisha, and West Bengal. The UT also has an occupancy capacity of 5,000 rooms in Puducherry as of 2018.
• Puducherry has a 45-km coastline, with 26 landing centres and 1,000 sq. km. of continental shelves (with potential for marine fisheries). The UT also has fresh-water area in the form of ponds and tanks suitable for both capture and culture fishery.
• As per the Lieutenant Governor Speech 2025:
  • The Department of Fisheries and Fishermen Welfare, Puducherry, held a Joint Working Group meeting with Central Fisheries Institutions to formulate a policy promoting deep sea fishing, focusing on the Andaman Sea. The initiative aims to identify potential fish landing zones using satellite technology, encourage sustainable fishing practices, and explore value-added processing and export opportunities.
  • The CMFRI has identified 15 potential sites in Puducherry and 10 in Karaikal for seaweed farming, with a proposal to integrate sea-cage farming and seaweed culture, aiming to empower fisherwomen in both regions.

Puducherry is a coastal Union Territory on the Bay of Bengal, comprising Puducherry, Karaikal, Mahe and Yanam, and is surrounded largely by Tamil Nadu. It ranks among the top-performing UTs on the SDG India Index and records the highest Social Progress Index score nationally, reflecting strong outcomes in quality of life and basic services. The economy is services-led, supported by well-developed road, port, airport and industrial infrastructure. Puducherry is emerging as an MSME and export hub through digital single-window reforms, plug-and-play infrastructure and ease-of-doing-business measures. Tourism, blue economy, fisheries, renewable energy and urban infrastructure upgrades are key growth drivers, complemented by strong healthcare, education and coastal resilience initiatives.