Dharamshala's economy is primarily driven by tourism, hospitality, and traditional agriculture, alongside its role as an administrative center (the winter capital of Himachal Pradesh).
* **Tourism and Hospitality:** The bedrock of the local economy, supporting hundreds of hotels, homestays, and trekking agencies. * **Retail and Handicrafts:** Kotwali Bazaar in lower Dharamshala and the McLeod Ganj market are bustling business districts. They feature thriving trades in Tibetan carpets, thangkas (scroll paintings), silver jewelry, and Himachali shawls. * **Tea Industry:** The region is famous for **Kangra Tea**. Several historic tea estates operate in and around the city, cultivating both green and black tea. * **Administration:** As the headquarters of the Kangra district and the Central Tibetan Administration, government and administrative jobs form a large employment sector.
