Daman and Diu is the second smallest union territory in India. They are two different parts, enclosed between sea on one side and Gujarat on the other. Daman is situated near Surat: and Diu is located near Junagadh.

Till 1987, Goa, Daman and Diu were administered as a single Union Territory. The main occupation for the people of Daman and Diu is fishing. The service sector mainly comprises of Real estate, Tourism and Insurance

It is a beautiful tourist spot, and is famous for its Nagoa Beach. There are some hotels to cater to the lodging needs of tourists.