The main natural resources of the area are coconuts and fish.
The licensing of commercial fishing used to provide an annual income of about US$2 million for the British Indian Ocean Territory authorities.
However, licenses have not been given since October 2010; the last expired after the creation of the no-take marine reserve.

All economic activity is concentrated on the largest island of Diego Garcia, where joint UK–US military facilities are located.
Construction projects and various services needed to support the military installations are done by military and contract employees from the UK, Mauritius, the Philippines, and the US.
There are currently no industrial or agricultural activities on the islands.
All the water, food and other essentials of daily life are shipped to the island.
An independent feasibility study led to the conclusion that resettlement would be "costly and precarious".
Another feasibility study, commissioned by organisations supporting resettlement, found that resettlement would be possible at a cost to the British taxpayer of £25 million.
If the Chagossians return, they plan to re-establish copra production and fishing, and to begin the commercial development of the islands for tourism.

Until October 2010, Skipjack (Euthynnus pelamis) and yellowfin tuna (Thunnus albacares) were fished for about two months of the year as their year-long migratory route takes them through Chagos waters.
While the remoteness of the Chagos offers some protection from extractive activities, legal and illegal fishing have had an impact.
There is considerable poaching of turtles and other marine life.
Sharks, which play a vital role in balancing the food web of tropical reefs, have suffered sharp declines from illegal fishing for their fins and as bycatch in legal fisheries.
Sea cucumbers, which cleanse sand, are poached to feed Asian markets.
The main natural resources of the area are coconuts and fish. The licensing of commercial fishing used to provide an annual income of about US$2 million for the British Indian Ocean Territory authorities. However, licenses have not been given since October 2010; the last expired after the creation of the no-take marine reserve.
All economic activity is concentrated on the largest island of Diego Garcia, where joint UK–US military facilities are located. Construction projects and various services needed to support the military installations are done by military and contract employees from the UK, Mauritius, the Philippines, and the US. There are currently no industrial or agricultural activities on the islands. All the water, food and other essentials of daily life are shipped to the island. An independent feasibility study led to the conclusion that resettlement would be "costly and precarious". Another feasibility study, commissioned by organisations supporting resettlement, found that resettlement would be possible at a cost to the British taxpayer of £25 million. If the Chagossians return, they plan to re-establish copra production and fishing, and to begin the commercial development of the islands for tourism.
Until October 2010, Skipjack (Euthynnus pelamis) and yellowfin tuna (Thunnus albacares) were fished for about two months of the year as their year-long migratory route takes them through Chagos waters. While the remoteness of the Chagos offers some protection from extractive activities, legal and illegal fishing have had an impact. There is considerable poaching of turtles and other marine life. Sharks, which play a vital role in balancing the food web of tropical reefs, have suffered sharp declines from illegal fishing for their fins and as bycatch in legal fisheries. Sea cucumbers, which cleanse sand, are poached to feed Asian markets.
Chagos Archipelago