The district of Dadra and Nagar Haveli has been declared as an industrially backward area. There are three Govt. Industrial Estate and one co-operative Industrial Estate. There are total of 3692 industrial units are established. Now there are total 2270 Industrial units permanently registered up to 2005-06, out of which 1863 Small Scale Units and 407 Medium and Large Scale Units. The total production of these units as on 31- 03-2002 is about Rs.7, 890Crores. The total employment generated through these industrial units are 46042 as reported by D.I.C. Silvassa. The following incentives are being granted by the administration to the registered units:

1)  15 years sales tax holiday. Those who have obtained Provisional SSIL Registration and IEM acknowledgement before 31st Dec. 2000 and Sales Tax Registration before 31st Dec. 2000 and Sales Tax Registration before 29/03/2002.
2)  No Octori Duty.
3) I.T. Exemption for 5 years. Who have commenced production between 01/04/1993 to 31/03/2002
4) 66 K.V. Sub-Station at Silvassa is already functioning, One more sub-station is established at Khadoli, Masat & Dadra. Another Sub-Station at 200 K.V is coming up at Kharapada. Approval accorded by the Government of India for setting up of SEZ at Velugam for textiles under Private Sector at Kharadpada, information & Technology and Gems &Jewellery Industry under Public Sector.

The District Industries Centre has been established at Silvassa and is functioning from June, 1978. Under the single roof of DIC, all the services and support required by new entrepreneurs are provided.


The District of Daman has been declared as a ‘backward area’ for the purpose of setting up industries. As such, numerous incentives such as power subsidy, 10 to 15 years exemption from sales tax, reduction in stamp duty, subsidy on fixed assets and tax holiday income tax for five years etc. have been made available to new units being set up here. The Administration of Daman has also recently introduced a Single Window Investor Friendly Time Bound (SWIFT) System aimed at streamlining the administrative machinery for industrial development, growth and reputation of industry. Daman’s proximity to Bombay and Petrochemical Complex of Baroda has helped a variety of industries such as man-made beers, plastic garments, packing pharmaceuticals etc. to come up and flourish.

The Administration of the Union Territory has set up an ‘Omnibus Industrial Development Corporation” (OIDC), with a share capital of Rs.5.00 crores, for aiding, assisting, financing, promoting, expediting and accelerating the economic development of the UTs of Daman, Diu and Dadra and Nagar Haveli in various areas covering industries, fish rising, mining, tourism, agro-industries, communication, transport, housing This Corporation notified as a Financial Institution (FI) under the IDBI Act by the Government of India for refinancing schemes of IDBI and SIDBI, is also entrusted with the task of financing industries coming up in the region and canalizing necessary raw materials at the reasonable prices. OIDC is expected develop new and maintain the existing industrial estate with adequate infrastructure facilities like roads, the supply of water and power, common facilities canteen, banks, meeting halls etc. In keeping with the later and spirit of the liberalized economy and industrial policies of India, the Administration of this UT has simplied procedure for SSI registration and obtaining other clearances like pollution control committee and for power connection. OIDC assisting in expediting these clearances.

Daman has been tourist centre because of its coastal location, serene, un-spoilt beaches and pollution-free atmosphere. The hotel industry has, therefore, thrived here. In recent times, the influx of industry has given an additional fillip to this sector comprising hotel and other incidental services like transport, auto service stations, bars and restaurants, retail traders etc.