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The District has a sound agricultural base but the industrial potential is low. The lack of enterprise and technical training and insight among the people has been the major constraint in the industrial growth of the district.

With the introduction of modern methods of cultivation and the guarantee for a minimum price for agricultural produce, the economic condition of the people has improved, providing the district with a better base for the industrial development.

The district is, however, poor in natural resources and only agricultural produce can provide material which can be processed and utilized by a few small scale units. The district leads the State in respect of production of wheat, paddy, oil-seeds (mustard),  potatoes, garlie and ground-nuts while barley, maize and pulses are grown in considerable quantities.

The size of the market, levels of income, educational standards, and degree of urbanization, habits and outlook of consumers are major factors which determine the prospects of the successful establishment of demand-based industries.

Small Scale Industries: Oils, wheat flour, dal, rice, engineering goods, chemicals, furniture, tire works, bricks, and tobacco based products, etc are produced in a large number of small scale industrial units, which are mainly located in the urban centres.

The investments in the small scale industries sector have gone up by more than twice since 1956. It is, therefore, obvious that the small scale industries have tended to be markedly capital intensive.

The local small scale industries may be mainly classified as those processing agriculture products, manufacturing agricultural implements, chemicals, wooden furniture, brick and tire works industries.
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