Introduction
Dadra & Nagar Haveli and Daman & Diu, a union territory (UT) of India, is located in the western region of India. The UT shares borders with the Arabian Sea, Maharashtra and Gujarat. In January 2020, the government merged the two union territories of Dadra & Nagar Haveli and Daman & Diu into one.
Out of the total installed capacity in FY25, 525.97 MW was managed by central utilities, and 333.15 by private companies. Thermal power plants accounted for a significant share of the total installed capacity with 696.75 MW, whereas nuclear energy and renewable energy contributed 29.22 MW and 133.15 MW, respectively.
Diu has become India’s first district to fully meet daytime electricity demand through 11.88 MW of solar power, showcasing a national benchmark in renewable energy adoption.
Total merchandise exports from the UT stood at Rs. 40,209 crore (US$ 4.65 billion) in FY25. The UT exported key items such as Engineering Goods, Plastic and Linoleum, Drugs and Pharmaceuticals, Man-Made Yarn/Fabs. /Madeups Etc., Organic and Inorganic Chemicals, Petroleum Products.
The UT has a well-developed social, physical, and industrial infrastructure. It has a domestic airport that connects it to the cities of Mumbai and Ahmedabad.
It also has a minor port infrastructure. The UT is an established base for the textile and plastic industries.
Between October 2019-June 2025, FDI inflows in Dadra & Nagar Haveli and Daman & Diu stood at Rs. 1,360.44 crore (US$ 181.29 million).
A domestic airport is in Diu with flights to and from Mumbai, Ahmedabad, and Bhuj.
The airport handled 1,04,218 passengers in FY25.
As of March 2025, Dadra & Nagar Haveli and Daman & Diu had 0.94 million wireline and wireless subscribers.
Recent Developments in Key Sectors
- In the Union Budget 2025-26:
- Rs. 109.66 crore (US$ 12.8 million) to Dadra & Nagar Haveli and Daman & Diu for various schemes in the education sector.
- Rs. 251.36 crore (US$ 29.33 million) to Dadra & Nagar Haveli and Daman & Diu to carry out various schemes in the medical and health sector.
- Rs. 440.55 crore (US$ 51.41 million) for various schemes related to roads and bridges.
- Rs. 1.52 crore (US$ 0.18 million) for the construction and development of ports and lighthouses.
- Rs. 40.02 crore (US$ 4.67 million) for schemes related to civil aviation.
- Rs. 56.31 crore (US$ 6.57 million) for the transmission and distribution of power.
- Rs. 63.86 crore (US$ 7.45 million) to Dadra & Nagar Haveli and Daman & Diu for water supply and sanitation.
- Rs. 20 Lakh (US$ 23339.95) for industrial training institute schemes, and Rs. 50 crore (US$ 5.83 million) for industrial promotion scheme.
- On April 17, 2023, Prime Minister Mr. Narendra Modi inaugurated the new campus of the NAMO Medical Education and Research Institute, the only medical college in the UT of Dadra and Nagar Haveli and Daman and Diu. The institute, which had been operating from a leased building, is shifted to its own campus spread across 35 acres in Silvassa. The foundation stone of the medical college was laid in 2019.
- In August 2022, the National Institute of Fashion Technology (NIFT) opened its campus in Daman.
- The proposed eight-lane Baroda-Mumbai expressway will pass through the states of Maharashtra, Gujarat, and Dadra & Nagar Haveli, thereby opening up the UT to investments.
- The ‘New Education Policy’ will help in the development of higher education infrastructure within the boundaries of this union territory.
- Dadra & Nagar Haveli and Daman & Diu are leaders in plasticisers and contribute to 28% of India’s plastic production in the form of aerospace, households, medical, greenhouses, defence and non-conventional energy.
- In FY25, plastic raw materials worth Rs. 8,406 crore (US$ 972.15 million) were exported from the union territory.
- In FY23, plastic raw materials worth US$ 220 million were exported from the union territory.
- Dadra & Nagar Haveli and Daman & Diu lead in integrated textile plants and polyester hubs and account for 80% of India’s texturizing yarn production.
- In FY25, manmade yarn, fabrics, and made-ups worth Rs. 4,869 crore (US$ 563.05 million) were exported from the union territory.
- In FY23, manmade yarn, fabrics, and made-ups worth US$ 602 million were exported from the union territory.
Dadra & Nagar Haveli and Daman & Diu is a strategically located western Indian UT with a strong industrial base, robust power availability, and export-led growth. The UT is a major hub for plastics and textiles, contributing significantly to India’s plastic production and texturised yarn output, supported by steady FDI inflows and over US$ 4.65 billion in merchandise exports in FY25. Reliable thermal and renewable power, strong road and airport connectivity, and leadership in solar adoption, with Diu meeting daytime demand through solar energy, reinforce its industrial competitiveness. Continued public investment in healthcare, education, transport, and industrial promotion, alongside upcoming connectivity projects, positions the UT as a high-performing manufacturing and investment destination.
FACTFILE
Capital
NAGeographical Area (sq km)
603State Language
Gujarati and MarathiLiteracy Rate
77.2 & 87.1 per centAdministrative Districts
3Key Industries:
Marine Products
Plastic
Textile
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