Daman and Diu Economy depends on the agricultural, fishing, industrial, tourism, and cottage industry sectors. The gross domestic product of Daman and Diu amounted to US$ 156 million in 2004. The Economy of Daman and Diu depends to a very large extend on the agricultural sector. The total land under cultivation is around 3,727 hectares which is about 67% of Daman and Diu's geographical area.
In Daman and Diu, the various kinds of crops that are cultivated are rice, pulses, ragi, groundnut, wheat, sapota, and beans. In the union territory, the irrigation facilities has been improved and this has boosted the cultivation of crops. The major livestock in Daman and Diu are goats, cattle, sheep's, and buffaloes. The sector has given a major boost to the Economy in the union territory of Daman and Diu. The Economy in Daman and Diu also gets its revenue from the fishing sector as the union territory's water bodies have high productivity in fish. The various kinds of fish found in Daman and Diu are shark, pomfret, prawns, dara, and eel. This sector has contributed to the growth of the Economy of the union territory of Daman and Diu.
The Economy in the union territory of Daman and Diu depends for its revenue on the industrial sector. In the union territory, the main area for industry are Kadaiya, Somnath, Bhimpore, and Dabhel. There are around 600 registered industries on small scale basis in Daman and Diu. In order to further boost Daman and Diu's industrial sector, a corporation for industrial development has been set up called the Omnibus Industrial Development Corporation (OIDC). The sector of industries has helped the Economy of Daman and Diu to grow.
Daman and Diu Economy also gets its revenue from the tourism sector. The union territory has many tourist spots and also has the famous Nagoa Beach. The sector of tourism has thus helped the Economy in Daman and Diu to grow. The other sector that contributes to the growth of the Economy of Daman and Diu is the cottage industry. The handicrafts products are manufactured from animal horns, ivory, and tortoise- shell. The products manufactured in the cottage industry in Daman and Diu are sold all over the country and even exported abroad. Thus the cottage industry sector brings in a lot of revenue for the Economy in Daman and Diu.
Daman and Diu Economy depends on many sectors for its growth. Thus the government must try to boost all the sectors so that the union territory's economy increases.