Dadra and Nagar Haveli were small territories located on the western coast of India that had been under Portuguese colonial rule since the 18th century. Following India's independence in 1947, there was a strong movement within India to integrate these territories, which were surrounded by the Indian states of Gujarat and Maharashtra. The desire to reclaim these areas was fueled by nationalist sentiments as well as a broader push against colonialism in various forms. In August 1954, local nationalists launched a movement to liberate the territories from Portuguese rule, leading to a declaration of independence. This marked the beginning of significant political activities that eventually garnered attention from the Indian government.

On August 11, 1961, the Prominent territories were officially merged into the newly constituted Union Territory of Dadra and Nagar Haveli. The Indian government recognized the local populace's support for integration and acted to formalize the merger. This integration helped to solidify the northern borders of the Indian Union, diminished colonial remnants in the region, and marked a significant step in the consolidation of India's territorial integrity during the post-independence era. The Union Territory was administratively managed, with a focus on development and integration of local governance systems.

The formation of Dadra and Nagar Haveli as a Union Territory provided a platform for local development initiatives that aimed at improving infrastructure, education, and health services in the region. Today, Dadra and Nagar Haveli is better known as Dadra and Nagar Haveli and Daman and Diu after it was merged with Daman and Diu, further adapting to the evolving socio-political landscape of India.