Union territory of W India; area 112 sq km/43 sq mi; capital Daman; Daman has an area of 72 sq km/28 sq mi. The port and capital, Daman, is on the west coast, 160 km/100 mi N of Bombay. The economy is based on tourism and fishing. Diu is an island off the Kathiawar peninsula with an area of 40 sq km/15 sq mi. The main town is also called Diu. The economy is based on tourism, coconuts, pearl millet, and salt.
Daman was seized by Portugal 1531 and ceded to Portugal by the Shah of Gujarat 1539; Diu was captured by the Portuguese 1534. Both areas were annexed by India 1961 and were part of the Union Territory of Goa, Daman, and Diu until Goa became a separate state 1987.