There are no major industries in Dadra and Nagar Haveli. The medium-scale industries manufacture automobile parts, spectacle frames, cotton, and art silk fabrics, nylon filaments, foam products, detergent powder, soap biscuits, chemical engineering goods, candies, fruit juice, wrist watches, etc.

For the local population of this Union Territory, agriculture is the main occupation. The major food crops are paddy, pulses, and ragi. Wheat and sugarcane are also produced. Mango, chiku, litchi, and apple are also produced. Forests cover 40 percent of the total area.