Pala has one of the strongest local economies in Kerala. While specific municipal GDP figures are not readily available, the economy rests on two massive pillars: agriculture (specifically natural rubber) and foreign remittances.
The town is famously tied to the global price of natural rubber. When rubber prices peak, the local economy booms, driving up retail sales, vehicle purchases, and real estate values. Furthermore, a massive diaspora of Pala natives working abroad (Non-Resident Indians or NRIs) sends back significant remittances. This influx of foreign capital has resulted in a high cost of living, high per-capita income, and robust banking and financial sectors within the town.
