The economy of Churachandpur is driven by a mix of retail trade, services, agriculture, and local manufacturing (notably handlooms). It serves as the primary commercial lifeline for the surrounding rural hill areas, acting as a transit and trading hub for goods moving between the Imphal Valley, the hill districts, and the nearby border with Myanmar.
While specific GDP figures for the town are not readily available, the local economy is uniquely buoyed by a steady influx of remittances from residents working in larger Indian metropolises or abroad. The cost of living is generally lower than in major Indian cities, though it can fluctuate significantly based on the transportation costs for goods brought up from the valley.
