The local economy is predominantly driven by agriculture, government administration, and small-scale retail.
* **Agriculture & Trading**: Tuensang serves as a central trading hub for agricultural products, organic produce, and livestock from surrounding villages. * **Handlooms & Handicrafts**: The region is renowned for its traditional Naga textiles, particularly the intricately woven shawls of the Chang, Sangtam, and Yimkhiung tribes, which are produced by local weavers and cooperatives. * **Retail & Commerce**: The main town bazaar hosts a variety of local businesses, grocery stores, and hardware shops. There are no major corporate headquarters, as the commercial landscape is composed entirely of micro-enterprises and local entrepreneurs.