Each enclave (Daman & Diu) constitutes one of the union territory's two districts. Daman and Diu are approximately 650 kilometres away from each other by road.

   For over 450 years, the small coastal enclaves of Daman (the port & coastal enclave) and Diu (the island) on the Arabian Sea coast were part of Portuguese India, along with Goa (now one of the states of India) and Dadra and Nagar Haveli (now another union territory of India). Goa, Daman and Diu were incorporated into the Republic of India on December 19, 1961 by military conquest.

   Diu remained in the possession of the Portuguese from 1535 until 1961, when it fell in the possession of the troops of the Indian Union, which invaded all of former Portuguese India under Operation Vijay.

   Portuguese military preparations began in earnest in 1954, following the Indian economic blockade. Subsequently, a multi-month land and sea blockade of the Portuguese colonies was organized.

   The Diu island was occupied by the Indian military on 19 December 1961. The Battle of Diu involved overwhelming land, sea and air strikes on the enclave for 48 hours until the Portuguese garrison there surrendered. It was declared union territory of India as 'Goa, Daman, and Diu'. Goa separated as a state in 1987, thus the remainder became union territory of Daman and Diu.

   Portugal did not recognise the Indian annexation of these territories until 1974. Recognition occurred after the overthrow of the dictatorial regime (with a half-century of rule) in Portugal as a result of the Carnation Revolution.

   Compared to Goa, tourism in Diu is very little developed.

   Daman is a port town on the Arabian Sea. Moti Daman Fort with mansions and offices, and Nani Daman Fort with the Church of ‘Our Lady of the Sea’ are Portuguese legacy. An amusement park on the shore at Devka, Damanganga Complex, Jampore Beach and Satya Sagar Udyan, a lake and garden complex, are of tourist interest. Diu is an island off the coast of Gujarat. The most interesting sight is the Fortress of Panikota. The Light House, Nagoa, Ghoghla and Chakratirath beaches, Jallandar Shrine, Chandrika Temple, Gangeshwar Temple, Diu Museum, and St. Paul’s Church are the chief attractions.