When were Dadra and Nagar Haveli and Daman and Diu merged?

The two Union Territories were merged into a single Union Territory, Dadra and Nagar Haveli and Daman and Diu, on 26 January 2020, under a law passed by Parliament in 2019. Its capital is Daman.

Who governs Dadra and Nagar Haveli and Daman and Diu?

The Union Territory has no legislature and is governed by an Administrator appointed by the President. Praful Khoda Patel is the Administrator. The territory elects two members to the Lok Sabha, one from Dadra and Nagar Haveli and one from Daman and Diu.

Why is Dadra and Nagar Haveli an industrial hub?

Tax incentives in the past, good connectivity to Mumbai and Gujarat, and available land made Silvassa and the surrounding area a major manufacturing centre for textiles, plastics, chemicals and engineering goods. The Union Territory's merchandise exports were about Rs 40,209 crore in 2024-25.

What is the Saraswati Vidya Yojana?

It is a scheme of the Union Territory administration to encourage girl students to pursue higher education. The administration revised the scheme in April 2026.

Dadra and Nagar Haveli and Daman and Diu: India's Merged Union Territory and Its Industrial Economy, Explained

On the map, they are tiny specks between Gujarat and Maharashtra, plus an island off the Saurashtra coast. In the economy, they punch far above their weight. Dadra and Nagar Haveli and Daman and Diu (DNHDD), merged into a single Union Territory in 2020, is one of India's notable manufacturing and export hubs. Here is how it works and what is new in 2026.

The 60-second version

Formed: 26 January 2020, merging two Union Territories.
Capital: Daman.
Governed by: An Administrator, Praful Khoda Patel, with no legislature.
Economy: Manufacturing-heavy; exports of about Rs 40,209 crore in 2024-25.
2026 updates: Higher spending on roads, a revised scheme for girl students, and a draft Ease of Doing Business regulation.

Why the two were merged

Dadra and Nagar Haveli, and Daman and Diu, were separate Union Territories, each with its own administration, despite being small and close together. Parliament passed a law in 2019 to merge them, arguing that one administration would cut duplication, reduce costs and improve services. The merger took effect on Republic Day 2020.

Both were once Portuguese territories, which were integrated into India after 1954 and 1961, and they retain a distinct heritage.

An industrial powerhouse

Manufacturing base: Silvassa and its surroundings host factories in textiles, plastics, chemicals, pharmaceuticals and engineering.
Exports: About Rs 40,209 crore in merchandise exports in 2024-25, according to IBEF data.
MSMEs: Around 35,889 micro, small and medium enterprises were registered on the Udyam portal as of 28 February 2026.
Tourism: Daman and Diu's beaches and Portuguese-era forts draw visitors, especially from Gujarat.

What is new in 2026

Roads and bridges: The allocation rose to Rs 441.78 crore in the 2026-27 budget estimates.
Girls' education: On 23 April 2026, the administration revised the Saraswati Vidya Yojana to encourage girl students to pursue higher education.
Ease of Doing Business: A draft EoDB Regulation, 2026 was published for comment.
Environment: An order banned Plaster of Paris idols in Dadra and Nagar Haveli district to protect rivers during festivals.

The politics

With no assembly, residents' main political voice is through the two Lok Sabha seats. The Administrator, appointed by the Centre, holds most executive power, which local politicians have at times criticised as leaving residents with too little say. The administration points to infrastructure growth and investment as evidence its model is working.

What to watch next

Investment and jobs under the new business rules.
Infrastructure delivery on the higher road budget.
Demands for more local representation, a recurring issue.

This article is based on official notifications, budget documents and public data.