Daman and Diu covers a total area of 112 sq km, with Daman acquiring 72 sq km and Diu acquiring 40 sq km. This Union Territory (UT) is endowed with rich and multi-faced cultural heritage. Due to its locational advantage and scenic beauty, it is considered as one of the most preferred and excellent tourism destinations, with tourist traffic rising year by year. It enjoys lot of greenery and provides an atmosphere conducive to the growth of various agricultural crops.

Daman, the capital of Union Territory of Daman and Diu, is situated between 20 degree 22'00" to 20 degree 27'25" North Latitude and 72 degree 49'42" to 72 degree 54'43" East Longitude. It is bounded by Gujarat on the east; by Arabian Sea on the west; by Kolak river on the north; and by Kalai river on the south. An important locational advantage of Daman is its close proximity to Mumbai, which is situated at a distance of just about 193 km.

Diu is a tiny island situated slightly off the coast of Kathiawar near the Port of Veraval in Gujarat with a coastal length of 21 kms. It is at a distance of about 768 km from Daman. It is bounded by Junagadh and Amreli District of Gujarat in the North and by the Arabian Sea from three sides. Diu is connected by two bridges with the mainland. It lies between 20 degree 44'34” to 20 degree 42'00” North Latitude and 71 degree 00'24” to 70 degree 52'26" East Longitude. Its length from the extremes north and south measures 4.6 kms and width from east to west measures 13.8 kms. Here, the topography is generally plain and the altitude is about 6 meters above the sea level.

The other important advantageous features of the UT are:-

• Supportive and flexible administrative set up
• Skilled and hard working human resource
• Efficient transportation and communication network
• Sound water and power supply
• Peaceful industrial climate
• Large consumer market etc.

As a result, Daman and Diu has attracted a large number of investors for setting up their industrial units in the UT. To encourage further inflow of investment, the Government of Daman and Diu has been undertaking several policy measures and incentives for various sectors of its economy.