The economy of Pondicherry is historically rooted in textiles and agriculture, but today it is primarily driven by tourism, manufacturing, and information technology.
### Economic Drivers - **Tourism & Hospitality:** A massive economic engine, supporting hundreds of boutique hotels, homestays, restaurants, and local tour operators. - **Manufacturing & FMCG:** The PIPDIC (Pondicherry Industrial Promotion Development and Investment Corporation) operates several industrial estates (such as Sedarapet and Mettupalayam) housing manufacturing units for consumer goods, electronics, and automotive parts. - **Handicrafts & Artisanal Goods:** Influenced heavily by the nearby Auroville community, there is a thriving local market for handmade paper, incense, pottery, and boutique clothing. - **IT & ITES:** The Puducherry IT Park has encouraged the growth of a nascent tech ecosystem and business process outsourcing sector.