After liberation from Portuguese regime and merger with the Union of India, the Administrator has started taking effective steps for the up liftmen of the area. The industrial development has started on a very low key bases during the year 1965 by establishing a industrial estate under co-operative sector namely Dan Udyog Sahakari Sangh Ltd., which was having nearly 130 plots. Since this is Union Territory without legislature there was no Sales Tax and it was a huge benefit, attraction for the entrepreneurs. Since the Administration was having an environment friendly attitude not allowed any polluting Unit and lacking in industrial infrastructure. Even though the industrial pace was good and up to 1970, good number of Units has been established in the territory, providing good employment to local tribes.

           In 1971, Government of India has declared U.T. as industrially backward area/district and extended the Scheme of 10% cash subsidy to the industrial units on their capital investment. The quantum of subsidy was increased gradually to 15% and 25% subsequently which resulted in speedy industrial development of the territory. This Scheme was closed/terminated from 30th September 1988 and during this period the Government has disbursed subsidy to the tune of Rs.12, 33, 66,142/- say Rs. 12.5 crores to the Units established.

           Meanwhile from January 1984 the Sales Tax Act was implemented and the Industrial Units who so ever establishes were eligible for sales tax exemption for the period of 15 years. This Scheme was in force up to 1998. At present the new established Units are getting the benefit of Central Sales Tax exemption which is available up to the year 2017.

           Further the territory has establish a very good net work of electricity which is being made available from Central grid and hence the electricity which is a main source of energy for the industry was very cheap compared to the adjoining area and being a comparatively small area network easy maintenance results is very less interruption say no interruption. The territory has one 220 KVA Substation and a network of 66 KVA all over the territory. Hence the industry in any corner of the territory gets the power without delay. Due to availability of power from central grid and less maintenance cost the ultimate power tariff is very less in comparison to adjoining states and other areas. The rate is at present Rs.2.75 per Unit. This has attracted many industries which has continuous process or required uninterrupted power.

           Since 1st April 1993, 100% deduction is available to the Industrial establishments in their profit and again, for the 1st five years and the same was available up to March 2002. This implies that those Units which begin to manufacture or produce articles on or before 30th March 2002 were entitled for 100% income tax holiday for the 1st five assessment years.

           Also after the initial five years benefit such industrial undertaking are entitled to the deduction at the rate of 25% for their profits and gains for the next five assessment years.

           Over and above these facilities the Government/Administration has developed three Industrial Estates at villages Masat, Silvassa Phase-I, Silvassa Phase II at Amli and Khadoli, having total 290 plots admeasuring 700 sq.mtrs. To 4000 sq.mtrs. With good road network. One Co-Operative Industrial Estates is also functioning in Amli village with necessary infrastructure. Over and above the Administration is considering the applications of individuals for converting the Agriculture land into non Agriculture. Till date Administration has considered N.A. for 1700 hectares of land and still 1300 hectares is available under Regional Plan 2000-2020 for Dadra and Nagar Haveli.

           The Value Added Tax has been enforcing since 1st April 2005, but the tax benefits/exemption available to the Industrial Units has been made available to them for the balance period.

           At present there are about 3175 units are set up comprising of 2588 units in SSI/MSE,544 MSI & 43 in LSI sector. The gross turn over for the last year financial year was of the tune of 110000 crores out of which 18000 crores turnover is by MSME: The industrial sector employs about 120000 people out of which 26000 employments is generated by MSME sector.

           The UT is having top five industrial sectors viz Textile basically yarn processing units (18%), Plastic (28%), Paper (10%), Chemical material producers basically by mixing and blending (7%) and Metal based units (6%).The UT of DNH is predominantly is a textile hub, amounting to about 70% of the nation’s textile value creation. Resultantly, today DNH is India’s texturizing capital with about 40% of national share. It provides direct and indirect employment to about 50,000 people.