Meta: Apart from cluster of small scale industrial units, the economy of Damn and Diu is largely dependent on agriculture, tourism and fisheries.

Economy of Daman & Diu

Economy of Daman & Diu

Once known for docks and shipyards, today Daman and Diu is abuzz with mushrooming of tourism and hospitality industry. Agriculture remains primary occupation of people of Daman and Diu. Cereals, wheat, ragi paddy, pulses, beans, banana, mango and groundnut are the major crops grown in this region. Livestock farming and fishing form another major economic activity in Daman and Diu. The industrial establishment in the union territory is dotted with presence of only small scale industries. There are no large scale industries found in this region. Limestone and basalt are the two mineral deposits found in Daman and Diu. The produce of forestry has facilitated growth of small scale paper packaging factories. Small scale industries in the region are known for production of pesticides, plastics, toys, fertilizers, electronic, dyes, chemicals, windmills and printing ink. The development of tourism in Daman and Diu has brought in huge investment in real estate business, mushrooming of hotels, farmhouses and bungalows by business tycoons.

Economy of Daman & Diu


Nearly 67% of the total area of Damn and Diu is under cultivated land.  Agriculture contributes largely to the economy of Daman & Diu and has been primary source of income for the people of Daman and Diu. The major crops grown in Daman district are cereals, wheat, ragi paddy, pulses, beans and groundnut. The agricultural crops are largely dependent on monsoon rain. Under the Damanganga Project, the union territory of Daman and Diu has been allotted irrigation schemes which facilitated double cropping system in this union territory. The other allied activities in the region include orchards, plantations, hunting, forestry, livestock and fishing. Sheep, goats, buffalos and cattles form important livestock in the UT. Orchid products such as Bananas, Mango and Sapota are also exported to other parts of the world. Fishing is another major economic activity of the region. The villages near the beaches depend on fishing as their main stay of livelihood.

Information Technology

Information Technology is yet to make its presence felt in this union territory in big way. Omnibus Industrial Development Corporation (OIDC) is an organization that oversees promotion and development of numerous enterprises and infrastructure including Information Technology. Enormous emphasis placed by government to promote Daman and Diu as tourist destination is one of the factors that come in way of developing IT sector in the region.


The two industrial areas located at Daman districts are pivotal economic zones in Daman and Diu. There are over 600 small scale industrial units in the region. Most of these industries are concentrated in town and cities such as Kadiaya, Bhimpore, Dabhel and Somnath. The manufacturing industries comprise of automobile, metallurgy, instrumentation, pharmaceuticals, cosmetics, agricultural pesticides and insecticides, acids, dyes, electronics and electrical goods, plastic, rubber, chemicals, corks, breweries, distilleries,   chemical powder, chemical textile, chemical paper, carbon black and paper packaging. Mechanicals parts such as diesel engine, cranes, cooling towers, cranes hoist lifts, and brass precision are being manufactured. The industrial units also manufacture goods such as home appliances, electrical accessories, chilling plants, battery parts, garments, air compressor spares, adhesives, tapes, computer peripherals, AC DC drivers, lighting luminaries hardware, audio visual equipment, software and stationery, molding material, building material, capacitors, air conditioned coils and jute products. Daman is known for its plastic manufacturing capacity as it produces 40% of plastic in the country.

Mineral Wealth

There are not much mineral resources found in Damn and Diu. The major parts of Daman district is covered by black soils. Only basalt rocks are found in Daman district. These basalt rocks are used for quarrying and building purposes. However, in Diu district, limestone deposits are found and mining is carried out in this part of the region.


Tourism is the major revenue contributor for this union territory. The government of Daman & Diu has been actively promoting this union territory as popular tourist destination. The hospitality and tourism industry has seen rapid expansion in this union territory. The tourism industry has in turn contributed to the growth of other sectors such real estate and the hospitality industry. Many hotel enterprises and industrial giants have set up hotels, bungalows, sea chalets and farmhouses.

There are no large scale industries found in Daman and Diu. Unlike in other states of India where there are separate public corporations dedicated to oversee the developmental activities of the state such as infrastructure, housing, industrial estates and Information technology, Damn & Diu has no such facilities. The Omnibus Industrial Development Corporation (OIDC) is one umbrella organization that is entrusted with the promotion of economic activities including supply of raw materials to the industrial units, development of infrastructure and enterprises in Daman and Diu.