The economy of Tuensang is largely agrarian and service-oriented, heavily reliant on government employment and administration. As the district headquarters, the public sector is the largest formal employer.
Commercial activity is centered around the town's bustling bazaars, which serve as the primary trading hubs for agricultural produce, textiles, and daily necessities for the surrounding villages. While large-scale industries are virtually non-existent, the informal economy—comprising retail, transport, and small-scale manufacturing—provides a livelihood for many residents. Cost of living is generally lower than in major Indian cities, though the cost of transported goods can be high due to the region's remote geography and challenging road networks.
