Historically, the economy of the Pangong region was entirely subsistence-based, relying on nomadic pastoralism. Today, the economy is supported by three primary pillars: tourism, military infrastructure, and traditional livestock rearing.
Since 2010, tourism has become the dominant economic driver. Thousands of tourists visit during the short summer window, providing locals with income through homestays, tented camps, restaurants, and transport services. This influx has significantly raised the median income of the local population.
The presence of the Indian Armed Forces provides another crucial economic lifeline. The military requires vast logistical support, leading to employment for locals in construction (primarily via the Border Roads Organization), transport, and supply lines. However, the region remains heavily dependent on external supplies from Leh for almost all modern goods, keeping the cost of living—specifically for food and fuel—relatively high.