Economy of Dadra and Nagar Haveli is primarily dependent on Agriculture and Tourism. Agriculture is considered as the economic activity that contributes most to the economy. The crops that are cultivated here include paddy which is sown in the 2/5th part of the agricultural land. Other food crops that are sown here are Ragi and small millets. Agriculture provides employment to approximately 60% of the people who work.

As the forests of Dadra and Nagar Haveli has plenty of economic resources, local residents also work as forest labourers. They also work there as guards to stop poaching and other illegal activities like cutting of trees. People also open Animal husbandry as the animals get a lot of green pastures here. These husbandries are a great contributor to the economy, which is aimed towards development of the area.

Tourism is another contributor to the economy as the natural beauty of the Union territory attracts many from India as well as from across the globe. The government is also developing many waterfronts as a tourist spot for promotion of tourism.

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