The economy of Mayabunder is predominantly agrarian and administrative. Because it is a district headquarters, the government sector is a major employer, providing administrative, educational, and healthcare jobs.
Beyond government employment, the local economy relies heavily on agriculture, fishing, and a slowly emerging eco-tourism sector. The cost of living is generally low compared to mainland Indian cities, though the cost of manufactured goods can be higher due to the logistics of importing items from Port Blair and the mainland.

