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Daman, town, capital of Dadra and Nagar Haveli and Daman and Diu union territory, western India. The town, together with numerous villages in the surrounding area, forms an enclave in southeastern Gujarat state and is situated on the Gulf of Khambhat (Cambay) of the Arabian Sea. Known as Damão, the town was part of Portuguese India. The town was sacked and burned by the Portuguese in 1531. It was subsequently rebuilt, and in 1559 it...