While the steep urban areas offer little room for farming, the immediate surroundings of Dharamshala—especially in the lower Kangra Valley—are agriculturally rich. The most famous export is Kangra tea, a delicate black and green tea grown on terraced estates established during the British era.
Local subsistence farmers primarily cultivate wheat, maize, and paddy (rice). Horticulture also plays a role, with orchards producing citrus fruits in the lower elevations and apples in the cooler, higher altitudes. Pastoralism, particularly the rearing of sheep and goats, remains an important traditional livelihood for the indigenous Gaddi community.
