Mandi's economy is historically rooted in agriculture, trade, and its status as an administrative hub. Today, it serves as a commercial center for the district.
* **Commercial Hubs:** The **Indira Market**, a unique sunken shopping complex with a central garden, is the city's premier commercial and retail district, housing apparel, electronics, and local goods. * **Major Economic Drivers:** Tourism and hospitality form a massive sector due to the city's heritage and its position as a transit point to Manali and Kullu. * **Public Sector & Utilities:** Hydroelectric power generation is a major industry in the region. The **Bhakra Beas Management Board (BBMB)** and other state-run hydroelectric projects are major employers. * **Education & Innovation:** The establishment of the **Indian Institute of Technology (IIT) Mandi** has brought an influx of academics, researchers, and a nascent startup culture focused on hill-region technologies and sustainable development.
