CONTRIBUTION OF FORESTS TO THE ECONOMIC DEVELOPMENT OF ANDAMAN AND NICOBAR ISLANDSM. RAMADASS AND L. RATHAKRISHNANAbstract The present study attempts to asses the multifaceted contribution of forests to the economy of Andaman and Nicobar Islands. After a peep into the traditional forms of utilisation of forests by men in this sea surrounded Islands, the study focusses on the measurable benefits of forests to the people and the economy such as State Domestic Produce (SDP). The secondary data was used for this purpose. The collected data were analysed with the help of simple and multiple regression, and the growth rates - linear and compound. The study found that the proportion of forest income to SDP was 12 per cent in 1981-1982 but declined to 11 per cent in 1987-88 owing to Government policy on tree felling. However, the regression results confirmed the positive and significant impact of forest income on SDP. Nevertheless the contribution of forests to State income is in no way commensurate with the commanding position of forests to the total geographical area of the Territory.
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