Daman and Diu together constitute the second smallest union territory of India. Earlier it was part of
Goa. It was only when Goa became a full fledged state, that the territory was separated from Goa to form an independent union territory. Daman lies on the
Gujarat coast while Diu is an islet in the southern fringe of
Kathiawar peninsula. Diu lies in the Gulf of Cambay near
Veraval Port and is separated from the southern extremity of the
Saurashtra peninsula by a narrow channel running through a swamp. Daman has a mild and humid climate while the climate of Diu is sultry.
Gujarati is the official language of the territory. Daman boasts a rich and multi-faced cultural heritage. Various Portuguese dances are well preserved and still widely presented. The population comprises Hindus and a minority of Christians and Muslims. Fishing is the main economic activity. There are about 550 industrial units in the territory. The main industrial areas of the union territory are Somnath, Dabhel, Bhimpore and Kadaiya.