The economy of Diglipur is primarily agrarian, distinguished from other parts of the Andamans which rely more heavily on government jobs or mass tourism. While tourism is a growing sector, the backbone of Diglipur's local economy remains farming and fishing.
Cost of living is generally moderate compared to mainland cities, though the price of manufactured goods and fuel can be higher due to the immense distance and logistics required to transport goods by ship from Port Blair or the mainland. Recent investments in infrastructure, such as road widening and better maritime facilities, are slowly boosting local commerce and paving the way for a more robust eco-tourism economy.