The economy of Kalahandi district represents the very foundation of the industries. The economically important minerals in the district including Bauxite, Graphites, Manganese, Iron and Quartz largely facilitate the growth of industrial sectors in its core, which has supported the economy of Kalahandi. The minerals, economically exploited serve as the raw materials for the domestic industries and also are exported. Thus the huge storage of minerals supports the economy of Kalahandi dually. The mines in the post independence period are nationalized, to encourage the proper utilization of these natural resources. With the solemn aim to stop piracy and to earn more by proper export marketing, the government has initiated the nationalization program of those mines with the commencement of the plan period. However, the increasing utilization of minerals has engendered the growth of the underground and opencast mines in Kalahandi, which involve a huge local workforce in the mining sector. Thus the mining sectors shares a significant contribution to prop up the domestic financial set up of Kalahandi.

Beside the contribution of the mining sectors there are three functional large-scale industrial units that supports the industrial economy of Kalahandi namely (1) Western Sugar & Chemical Industries Ltd, Bhawanipatna at Mathura in Dharamgarh Sub-Division, (2) Konark Growers Cooperative Spinning Mills Ltd, Kesinga and (3) Orissa Regional Cooperative Oil Seed Growers Union Ltd. at Bhawanipatna.

IPICOL has signed agreement with M/s Western India Sugar and Chemical Industries Ltd. India targeting for 2500 TCR capacity sugar project in Dharamgarh Sub-division of Kalahandi with an estimated project cost of Rs.32.00 crores. The mill at the beginning, though provided employment to a huge workforce, it had not the sanction of a commercial production. Therefore, besides being supporting the domestic economy the Western India Sugar and Chemical Industries Ltd. did not participate in the export marketing. With the approval of the project by State Government in 1993, the Sugar and Chemical Industries Ltd functionally started its commercial production.

In the second phase of the plan period, the Government has decided to set up a Spinning Mill Unit of 25,000 spindles at Kesinga in the district to help in reducing shortfall yarn requirement of the State. The industry by providing employment supports the economy of Kalahandi and at the same time induces development in the Gross National Product (G.N.P) of cotton. In addition to the government schemes and programs the cotton produced under the Cotton Development Programme is some extent instrumental to prop up the cotton requirement of this proposed spinning Mills Unit.

The Oil project in Orissa mainly encompassing the oil seeds and vegetable oil project in Kalahandi has found very profitable market in the national arena. The Oil Project in Kalahandi, so far has been deciphered by the eminent economist is the major contributor of the economy of Kalahandi.

Primarily an industrial district the contribution of the agricultural sector is no less important in the financial set up of Kalahandi. The extensive region of Kalahandi, except the western hilly tract is covered with fertile soils, which encouraged the growth of the agricultural sector. The climatic condition also is responsible for the thriving prosperity of agriculture. Agriculture in Kalahandi stimulates the growth of agro-based allied industries, which support the rural economy in Kalahandi on a large scale. Moreover nearly half of the total Geographical area of Kalahandi District 4,962 Sq.Km is covered with forest, which also encourages the forest-based industries in Kalahandi. Apart from these, the forest products are also exported and thus the forests in the district serve as the important contributor in the economic development of Kalahandi.