Dadra and Nagar Haveli and Daman and Diu post, merging after 2020, have seen tremendous economic growth. The primary driver of its economy is its textile manufacturing and plastic manufacturing. They account for 80% and 28% of India’s total output, respectively. It currently houses 39 Industrial Estates. 3292 Industrial Units, of which 2929 are in the small-scale sector. In FY23, manmade yarn, fabrics, and made-ups worth US$ 602 million were exported from the union territory.
The district of Daman and Diu has been declared a backward area for industrial purposes and has been given exemption from sales tax for 10-15 years, reduction in stamp duty and power subsidies to elevate its industrial progress. Their administration has also introduced a SWIFT (single window investment friendly time-bound) system for streamlining administrative infrastructure.
"The Central government has spent more than ₹5,500 crores to provide Silvassa with good infrastructure, roads, bridges, schools, and improved water supply in the last five years", Narendra Modi, Prime Minister.
The Union Territory Administration has established an "Omnibus Industrial Development Corporation" (OIDC) with a share capital of Rs.5.00 crores for assisting, financing, promoting, expediting, and accelerating the economic development of the UTs of Daman, Diu, and Dadra and Nagar Haveli in various areas including industries, fish raising, mining, tourism, agro-industries, communication, transport, and housing. This Corporation, which has been designated by the Government of India as a Financial Institution (FI) under the IDBI Act for the purpose of refinancing IDBI and SIDBI schemes, is also tasked with financing new industries in the region and channeling necessary raw materials at reasonable prices.
OIDC is expected to develop new industrial estates and maintain existing ones with adequate infrastructure facilities such as roads, water and power supply, canteens, banks, meeting halls, and so on. In keeping with the spirit and later of India's liberalized economy and industrial policies, the administration of this UT has simplified the procedure for SSI registration as well as obtaining other clearances such as pollution control committee and power connection. The OIDC is assisting in the expediting of these clearances.
The share of the industry sector in the GDP of UT of DNH&DD is approx. 32.78%. There are 39 Industrial Estates in Daman. OIDC has developed two industrial areas at Daman, and other industrial areas are located at Dabhel, Bhimpore, Kachigam and Kadaiya.
The key sectors which have a large presence include polyester and cotton yarn (it is estimated that 80% of India's polyester yarn is made in these two UTs), plasticizers, papers, petroleum by-products such as lube oils, pharmaceuticals, plastics, electrical conductors, Marble Tiles. In the textile sector, the industrial units are engaged in spinning (mainly cotton and micro yarn spinning) and processing (mainly texturizing, twisting, weaving and knitting activities). The main activity of the plastics sector is injection and blow-molded articles, including industrial as well as domestic household products, furniture, etc. The paper industry is engaged in the manufacturing of corrugated paper boxes, sheets, rolls, paper tubes, etc.
A few major players in the market are Nilkamal Plastics, which has 42 Depots with more than 1,100 distributors across the country, and Time Technoplast Ltd., An international conglomerate with 34 manufacturing facilities across the globe and which is prominent for their innovative packaging solutions. AYM Syntex (formerly Welspun), which is also India’s most innovative yarn manufacturer, is one of the major manufacturers situated in this region, which is contributing to the growth of DNH&DD.
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