The local economy is predominantly driven by government administration, agriculture, aquaculture, and traditional crafts rather than corporate enterprises.
* **Government & Administration**: As a district headquarters, local government offices, law enforcement, and administrative services are among the most significant formal employers. * **Handloom and Handicrafts**: Weaving is a vital cottage industry. Local artisans produce traditional Manipuri textiles, stoneware, and bamboo crafts. * **Agriculture & Fishing**: Due to the proximity of Loktak Lake, farming (rice) and the trading of aquatic products are major economic activities. * **Local Markets**: The town features traditional markets—often run entirely by women, echoing the famous Ima Keithel culture of Imphal—where fresh produce, fish, and woven goods are traded daily.