Explanation
Why Correct: Lakshadweep's atolls and lagoons in the Arabian Sea provide clear, warm, shallow waters with optimal salinity and sunlight, supporting diverse coral reef ecosystems including fringing and patch reefs.
Distractor Analysis: Daman & Diu has muddy coastal waters unsuitable for coral growth. Sundarbans features brackish mangrove forests, not coral reefs. The Narmada estuary carries high silt loads that smother coral polyps.
Takeaway: India's other major coral regions include the Gulf of Kutch, Gulf of Mannar, and Andaman & Nicobar Islands, all protected as marine national parks or biosphere reserves.