Ukhrul's economy is primarily agrarian, heavily supplemented by traditional cottage industries, retail trade, and a growing tourism sector.
_Data not readily available for this location_ regarding specific GDP figures. However, the economic backbone relies on agriculture, with surplus produce sold in the town's vibrant local markets. Government services and administration also form a significant portion of formal employment in the town.
In recent years, eco-tourism and cultural tourism have begun injecting vital capital into the local economy. The annual Shirui Lily Festival brings a massive influx of domestic and international tourists, providing temporary but substantial boosts to local hospitality, transport, and retail sectors.