There shouldn't be a doubt about this. If budget is not a concern, Andaman is far far better than Pondicherry (Puducherry). Pondicherry, according to me is a place where you can go and just chill on a budget. I would short similar places in following order:
1. Andaman & Lakshadweep
2. Goa (South Goa)
3. Kerela
4. Pondicherry
5. Mahe (Small and less traveled place.Although on the other side of India, it comes under Pondicherry)