Historically an agrarian economy, Diskit has undergone a massive economic transformation over the last three decades. Today, the economy is overwhelmingly anchored by tourism and the hospitality sector.
During the short summer window, the town bustles with activity as guesthouses, restaurants, taxi syndicates, and local shops cater to thousands of domestic and international tourists. The secondary pillar of the economy is the presence of the Indian Armed Forces; Diskit serves as a crucial logistical and supply base for military operations in the Siachen Glacier and border areas. Agriculture remains important for local subsistence, but tourism provides the primary source of cash income for most households.
