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Daman's coastal location isn't just historically significant; it also plays a crucial role in its administrative functions. Being a coastal city, Daman facilitates trade and commerce, connecting the Union Territory to other parts of India and the world. The city houses the main administrative offices, legislative assembly, and other important government institutions. This concentration of administrative power in Daman makes it the natural choice for the capital. Furthermore, its relatively developed infrastructure and connectivity compared to other parts of the Union Territory contribute to its suitability as the capital.
