The Economy of Koraput District is primarily based upon forest and agriculture (including shifting cultivation), the bulk of commodities used domestically for everyday use are agricultural and forests products. The District with semi evergreen to deciduous vegetation endowed with various wild plants as a natural resource.

There are many industrial sectors that contributes to the growth of the economy of the Koraput District. HAL factory (Hindustan Aeronautics Limited, a defence enterprise of the Government of India) is 15 km from Koraput town. It has employed 6000 engineers and technicians. The National Aluminium Company Ltd.(NALCO), Damanjodi also has its significance to boost up the economy of Koraput district. Around 2500 engineers & technicians are engaged in the process of extraction of Alumina from Bauxite. Other than the employees there are thousands of workers engaged by hundreds of contractors.