Daman and Diu Economy



The Daman and Diu economy is largely dependent on the small scale industrial units that the union territory is endowed with. Apart from industries, agriculture and tourism also contribute substantially to the Daman and Diu economy. A number of other ancillary sectors like real estate have also boomed in the developing union territory and effectively buttress the economy.

There are about 535 registered scale industrial units in Daman and Diu. Although these industrial enterprises are spread all across the union territory, the principal industrial belt is concentrated around the towns of Dabhel, Kadaiya, Somnath and Bhimpore. In order to augment the industrial growth, a 1x10Kva 66/11Kva unit has been set up in the towns of Daman and Dalwada. Mechanical products, chemical paraphernalia, electronics and electrical goods, plastic, rubber, pharmaceuticals, paper packaging, metallurgy and instrumentation industries have also mushroomed in the union territory.

Agriculture is the main source of livelihood of the people of Daman and Diu. Paddy is the principal cultivated crop. Besides paddy, pulses, oilseeds, groundnuts, ragi, beans, wheat, mango, sapota and banana are also grown aplenty. Almost 67% of the total land area of Daman and Diu ( about 3727 hectares) is under cultivation.

Daman and Diu, being a popular tourist destination has a well developed tourism industry. The tourism industry has also accelerated the growth of several auxiliary sectors like real estate and the hospitality industry. Several hoteliers and industrial magnets have invested in hotels, seaside chalets, bungalows and farmhouses in the union territory. The affordable land prices and the proximity to the Special Economic Zones have facilitated the development of the real estate sector.

Daman and diu Industries

Daman Industries are the focal point of the thriving Daman and Diu economy. The puny union territory is burgeoning into a bustling industrial center and is spreading its wings to venture into newer territories. Mechanical products, chemical paraphernalia, electronics and electrical goods, plastic, rubber, pharmaceuticals, paper packaging, metallurgy, instrumentation, service as well as hospitality and tourism industries are the union territory's forte. Consequently, a plethora of industries specializing in these sectors have mushroomed in the union territory. Amongst the mechanical industries in Daman and Diu, the automobile industry, bearing, cranes, cranes hoist lifts, cooling towers, brass precision components as well as industries specializing in diesel engine parts deserve special mention.

Air compressor spares, electrical accessories, computer peripherals and stationery, hardware, software, chilling plants, battery parts, capacitors, air conditioned coils, AC DC drivers, lighting luminaries and home appliances are some of the other noted industries in Daman. Manufacturing units of chemicals, corks, breweries, distilleries, acids, dyes, cosmetics, agricultural pesticides and insecticides, chemical paper, carbon black, chemical powder, chemical textile auxiliaries are a host of other materials have also been established in Daman. Other industrial units that deal with the manufacturing of ayurvedic unani medicine and herbs, adhesives, tapes, molding material, building material, audio visual equipment, jute products and paper boards have also sprung up in the union territory. The hospitality industry has also made its mark and carved out a niche for itself in the popular tourist hub of South India.

Daman and diu Agriculture

Daman and Diu agriculture is one of the principal sources of livelihood of its populace and contributes substantially to the Daman and Diu economy. Daman and Diu is the second smallest Union Territory of India, which remained a branch of coastal settlements on Arabian Sea coast for almost four centuries since the time of the Portuguese travellers. Daman and Diu are two separate segments, both on the sea side and enclosed by Gujarat.

In the district of Daman, several cereal crops are grown. The most important field crops grown are Ragi, groundnut, paddy, pulses and beans. Wheat is also an important crop. This union territory also grows and exports Sapota, Mango and Bananas. The net field area is about 3720 hectares which encompasses about 67% of the entire geographical area of the districts.

Daman and diu Real Estate

Daman and Diu real estate is one of the booming industries in the recent times that contribute substantially to the Daman and Diu economy. Goa, Daman and Diu were amalgamated into the Union of India as sovereign states and Union Territories. But, Goa was elevated to being a state, Daman and Diu became Union Territories. The populace of Daman and Diu mainly speak Marathi and Gujarati.


Last Updated on: 3rd April 2013