DAMAN or DAMAUN, town, Portuguese India, capital of the settlement of Daman, on the east side of the entrance of the Gulf of Cambay within the Bombay Presidency with a station on the Bombay, Baroda and Central India railway. The settlement, which has an area of 149 sq.m. and a population (1921) of 48,614, is subject to the Governor General of Goa. It is divided into two parts, Daman proper, and the larger pargana of Nagar Havili, the two being separated by a narrow strip of British territory. The soil is fertile though only a small proportion is cultivated for rice, wheat and tobacco. The teak forests are valuable. Weaving is less important than formerly; mats and baskets are made. Deep sea fishing and shipbuilding are important. There is no foreign trade.
Daman town was sacked and burnt by the Portuguese in 1531. It was subsequently rebuilt, and in 1558 was again taken by the Portuguese, who made a permanent settlement and have held it since. The territory of Daman proper was conquered by the Portuguese in 15 59 ; that of Nagar Havili was ceded to them by the Mahrattas in 178o in indemnification for piracy.