Daman serves as the capital of the Union Territory of Dadra and Nagar Haveli and Daman and Diu. Unlike Indian states, which have their own elected legislative assemblies and Chief Ministers, Union Territories are administered directly by the Central Government of India.
The President of India appoints an Administrator to govern the territory (currently Praful Khoda Patel). The local civic administration is handled by the Daman Municipal Council (DMC), which oversees city planning, sanitation, local roads, and public services. Daman falls under the single Lok Sabha (lower house of the Indian Parliament) constituency that covers Daman and Diu, ensuring the region has political representation at the national level.

