The economy of Karimganj is primarily agrarian and trade-based, heavily shaped by its status as a border city. While precise GDP figures for the city alone are not readily available, it serves as a critical commercial hub for the Barak Valley and neighboring states like Tripura.
Cross-border trade with Bangladesh is a major economic engine. The Sutarkandi Land Customs Station (and international trade center) located near the city facilitates the export of coal, fresh fruits, limestone, and tea, while importing goods like hilsa fish, synthetic products, and cement.
The local retail and wholesale markets in Karimganj, such as Char Bazar, supply goods to the surrounding rural areas. The cost of living is generally moderate and comparable to other tier-3 cities in northeastern India. Future economic development is focused on improving transport logistics, enhancing border trade infrastructure, and promoting the local agricultural sector.