Tezu's economy is largely agrarian and administrative, with a growing focus on small-scale commerce and eco-tourism.
* **Major Employers:** The Government of Arunachal Pradesh is the largest employer, as Tezu is the administrative headquarters of the Lohit District. * **Agriculture & Horticulture:** The region is known for producing mustard, ginger, oranges, and tea. Small tea growers are an increasingly important economic demographic. * **Tezu Market:** The central commercial hub featuring local grocers, clothing stores, pharmacies, and hardware shops. * **Handicrafts:** The Tibetan Refugee Settlement in Tezu is renowned for its hand-woven carpets and traditional crafts, which are a significant local micro-industry.