The economy of Pondicherry is vibrant and diverse, shifting historically from agriculture and textiles to services, tourism, and light manufacturing. The Union Territory's GDP per capita is among the highest in India.
Tourism is a massive economic engine; the presence of the Sri Aurobindo Ashram, Auroville, and the city's heritage architecture draws millions of domestic and international visitors annually. The cost of living is moderate—higher than rural Tamil Nadu but significantly lower than major Indian metropolises like Chennai or Bangalore. The government is also a major employer, providing a stable economic base for a large segment of the population.
