Daman and Diu is the second smallest union territory of India.

Lakshadweep being the smallest in terms of area as well as population. Daman and Diu are actually two parts, both on the sea side and both enclosed by Gujarat.

For over 450 years, the coastal enclaves of Daman and Diu on the Arabian Sea coast were part of Portuguese India, along with Goa and Dadra and Nagar Haveli. Goa, Daman, and Diu were incorporated into the Republic of India on 19 December 1961, by military conquest At the time of Union of India's independence from the British Empire in 1947, Portugal held a handful of enclaves on the Indian subcontinent - the districts of Goa, Daman and Diu and Dadra and Nagar Haveli - collectively known as the Estado da ndia The 1961 Indian annexation of Goa (also referred to as Invasion of Goa, the Liberation of [3] [citation needed] Goa and the Portuguese-Indian War ), was an action by India's armed forces that ended Portuguese rule in its Indian enclaves in 1961. The armed action, codenamed Operation Vijay by the Indian government, involved air, sea and land strikes for over 36 hours, and was a decisive victory for India, ending 451 years of Portuguese colonial rule in Goa. Thirty-four Indians and thirty-one Portuguese were killed in the fighting. The brief conflict drew a mixture of worldwide praise and condemnation. In India, the action was seen as a liberation of historically Indian territory, while Portugal viewed it as an aggression against national soil. Goa, Daman, and Diu were administered as part of a single union territory until 1987, when Goa was granted statehood, leaving Daman and Diu as a separate union territory; each enclave constitutes one of the union territory's two districts
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After conferring statehood on Goa on 30 May, 1987, Daman and Diu was made a separate Union Territory. Daman lies about 193 km away from Mumbai. It is bound on the east by Gujarat, on the west by the Arabian Sea, on the north by the Kolak River, and on the south by Kalai river. The neighbouring district of Daman is Valsad in Gujarat. Diu is an island connected by two bridges. The neighbouring district of Diu is Junagadh of Gujarat.
Capital Districts Daman 2

Diu District, an area of 40 km. The main settlement is the town of Diu. Daman District, an area of 28 sq mi or 72 km. The main settlement is the city of Daman