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.

The share of industry sector in the GDP of UT of DNH&DD is approx. 32.78%. There are 39 Industrial Estates in Daman, 3292 Industrial Units of which 2929 are in the small scale sector. Two industrial areas have been developed by OIDC at Daman and other industrial areas are located at Dabhel, Bhimpore, Kachigam and Kadaiya. Industrial development in Dadra and Nagar Haveli started with the establishment of an industrial estate under the co-operative sector by Dan Udyog Sahakari Sangh Ltd. in 1965. There are more than 45 private Industrial Estates in the UT. Thereafter, three Government Industrial Estates have been developed at Silvassa, Masat and Khadoli in the territory during 1972-85. There are 3175 Industrial Units of which 2620 are in the Micro/Small sector and 590 in Medium/ Large scale sector. On the whole it is estimated that industry alone provides employment to 1,20,000 people in the two territories.

The key sectors which have a large presence include polyester and cotton yarn (it is estimated that 80% of India’s polyester yarn is made in these two UTs), plasticizers, papers, petroleum by products such as lube oils, pharmaceuticals, plastics, electrical conductors, marble Tiles.
In the textile sector, the industrial units are engaged in spinning (mainly cotton and micro yarn spinning) and processing (mainly texturising, twisting, weaving and knittng activities). While, the main activity of the plastics sector is injection and blow moulded articles, includes industrial as well
domestic household products, furniture, etc. The paper industry is engaged in the manufacturing of corrugated paper boxes, sheets, rolls, paper tubes, etc.


Tourism is a major focus sector in these UT’s. Daman & Diu and Dadra & Nagar Haveli are endowed with both natural and man-made tourist attractions. The major tourism drivers in Daman and Diu are of two types: heritage attractions and natural beach front attractions. In addition to these there are religious attractions, caves and man-made attractions too like water park,
green environs, etc. The current tourism trend in Daman is mainly centered around the domestic tourists from the nearby towns and cities like Surat, Nasik,Mumbai, etc. of the states Gujarat and Maharashtra. They are either leisure tourists or business / conference tourists. In Diu, tourists are mainly from the neighboring state of Gujarat including few foreign tourists. Diu, inspite of having the right environment to grow as a tourist destination, has restricted tourist arrivals mainly due to the difficulty in accessibility to Diu, and constraints in tourism infrastructure. The Major Tourism drivers and attractions in Dadra &Nagar Haveli are the rich flora and fauna in the forest areas as well as the beautiful lake nestled at the border of Maharashtra and Gujarat around the Madhuban dam of

Micro, Small and Medium Enterprises (MSME)

MSME Sector has been recognized worldwide as an Engine of Economic growth and for promoting equitable development of a country. This sector is capable of generating huge employment opportunities with low capital, operational flexibilities and quick adoption of technologies. MSMEs are backbone of Indian economy as nearly 63 million MSME contribute around 45% to manufacturing output, more than 40% to exports, over 28% of the Indian GDP while creating employment to 111 million people. Under ambitious plan of Government of India to make India a 5 Trillion USD Economy by 2025, MSME Ministry has set a target of 50% MSME contribution to GDP. MSME constitute 95% of total industrial units in our country.

Ministry of Micro, Small and Medium Enterprises has redefined from 01 July 2020 which is as under:

  1. A Micro Enterprise, where the investment in Plant and Machinery or Equipment does not exceed 1 Crore and turnover does not exceed 5.00 Crores.
  2. A Small Enterprise, where the investment in Plant and Machinery or Equipment does not exceed 10.00 Crores and turnover does not exceed 50.00 Crores.

iii. A Medium Enterprise, where the investment in Plant and Machinery or Equipment does not exceed 50.00 Crores and turnover does not exceed 250.00 Crores.

The above new definition covers almost 99 per cent of all firms enabling MSMEs to grow in size and create jobs with the removal of artificial separation between manufacturing and service MSMEs.

MSME schemes and initiatives
  1. Distressed Assets Fund -Subordinate Debt for MSMES- Credit Guarantee Scheme for subordinate debt for stressed MSMEs as equity/quasi equity from the promoters for purpose of debt-equity computation. ii. Fund of funds to infuse equity worth 50000 Crores in the MSME Sector:

iii. Champions Portal an ICT based technology system for making the smaller units big by helping and handholding them.

  1. Prime Minister’s Employment Generation Programme (PMEGP) a major credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by assisting traditional artisans and unemployed youth in rural as well as urban areas.
  2. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to facilitate flow of credit to the MSE sector without the need for collaterals/ third party guarantees.
  3. Cluster Development Programme a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSES) and their collectives in the country.

vii. Scheme of Fund for Regeneration of Traditional Industries (SFURTI) with an aim to organize the traditional artisans into clusters and to make the Traditional Industries more productive, profitable and capable for generating sustained employment.

viii. Technology Centres/Tool Rooms for providing practical skill development training to more than 2 lakh unemployed youth and industry workforce per year.

  1. Credit Linked Capital Subsidy for technology upgradation of Micro and Small enterprises in the country. Under the scheme, 15 per cent capital subsidy is provided to the eligible MSES for upgrading their technology with the well-established and improved technology as approved under the scheme.
  2. Technology Upgradation Scheme envisages another activity, namely, Product Quality Certification with the to encourage MSMEs to Acquire Product Certification Licenses from National / International Bodies, thereby improving their competitiveness.
  3. Public Procurement Policy for MSES Order, 2012 for promotion and development of Micro and Small Enterprises by supporting them in marketing of products produced and services rendered by them.

xii. GeM- Government e-Marketplace for online procurement of goods and services by central and state government organizations of MSMEs. As part of AatmaNirbhar Bharat Abhiyan I, it was decided to disallow global tenders for government procurement up to 200 crore to support Make in India.

xiii. Skill Development for self-employment as well as wage employment. All type of programmes have input which provide necessary information and skills to a trainee to enable him to establish his own micro or a small enterprise.

Recent initiatives of RBI for MSMES
  1. Special Liquidity Facility to SIDBI for MSMES: RBI has provided a Special liquidity facility of 15,000 crores to the Small Industries Development Bank of India (SIDBI) to meet the funding requirements of micro, small and medium enterprises (MSMEs).

2.Additional Liquidity Facility to SIDBI for MSMEs: In order to meet MSMEs short- and medium-term credit needs to kick start the investment cycle with additional focus on smaller MSMEs and businesses including those in credit deficient and aspirational districts, RBI has provided a further special liquidity facility of t16,000 crores to SIDBI. The facility would be extended for on-lending/refinancing through novel models.

  1. Enhancement of the Exposure Thresholds under Resolution Framework 2.0: The Resolution Framework 2.0 announced by the Reserve Bank on May 5, 2021 stipulated a maximum aggregate exposure of 225 crores for considering resolution of CoVID-19 related stress of MSMEs as well as non-MSME small businesses, and loans to individuals for business purposes. The above exposure threshold was enhanced to 250 crore.
  2. Fresh lending to MSMEs was allowed equivalent exemption from the Cash Reserve Ratio (CRR).
  3. Lending by small finance banks (SFBs), micro finance institutions (MFIs) – NBFC- MFIs and others- with gross loan portfolios of up to 225 crore by end-March 2021 -was made eligible for reckoning as priority sector lending (PSL) and such loans can be deducted from net demand and time liabilities (NDTL) for cash reserve ratio up to end December 2021.
  4. Implementation of recommendations of Expert Committee on MSMEs: The committee had made 37 broad recommendations. Out of 21 recommendations pertaining to the Reserve Bank, 11 have already been implemented and remaining are under consideration. The major recommendations, which were implemented, include (i) introduction of video-based Know Your Customer (KYC) norms; (ii) increase in the threshold limit for regulatory retail portfolio of banks from 25 crores to 27.5 crore; (iii) creation of Payment Infrastructure Development Fund (PIDF) to provide impetus to acceptance infrastructure to promote digital payments and commerce platforms for rural MSMEs; and (iv) co-lending model for all NBFCs.
  5. All cooperative banks were included as Eligible Lending Institutions (ELIS) under the “Interest Subvention Scheme (ISS) for MSMES 2018” of the Government of India with effect from March 3, 2020. The ISS for MSMEs 2018 (as amended) provides for an interest relief of two per cent per annum to eligible MSMEs on their outstanding fresh/incremental term loan/working capital and limited to the extent of ti crore during the period of its validity, subject to the conditions prescribed in the Scheme.
  6. RBI deregulated the interest rates on advances by SCBS (excluding RRBs). With a view to strengthen the transmission of monetary policy, the banks were mandated to link all new floating rate personal or retail loans and floating rate loans extended to MSMEs to external benchmarks such as repo rate, Treasury Bill Rate and any external benchmark published by Financial Benchmarks India Pvt Ltd (FBIL).
  7. RBI had issued instructions to banks during 2009, 2016, 2020 regarding introduction of Debt Restructuring Mechanism for MSMEs for revival of potentially viable sick units/enterprises and non-discretionary One Time Settlement scheme for recovery of non-performing loans for the MSE sector. Framework for Revival and Rehabilitation of MSMEs. The Ministry of MSME, Government of India, vide their Gazette Notification dated May 29, 2015 had notified a ‘Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises’ to provide a simpler and faster mechanism to address the stress in the accounts of MSMEs and to facilitate the promotion and development of MSMEs. -2.6 Status and trend in MSME financing in Gujarat