Economy of Thoubal District is mainly agrarian in character. Agriculture is the most important source of livelihood for the people of this district of Manipur. More than 70 per cent of the total population of the district is directly or indirectly engaged in agricultural activities. The valley is fertile and the topography of Thoubal District provides good opportunity for irrigation, natural as well as artificial. Rice accounts for above 90 per cent of the total land area under cultivation. Although the average land holding is one of the lowest in India, yield per acre is comparatively high. With the increasing use of fertilizers and the modern methods of cultivation, there is a great scope of increasing the overall production. The soil of the district is fertile and with the help of irrigation facilities from the Imphal barrage double cropping is widely practiced in the district.

Interestingly, in some areas, even triple cropping is practiced - first paddy crop starting late February or early March, second paddy crop in July and early August and the third crop of mustard seeds, pulses, etc. in November. Other crops grown in Thoubal District are sugarcane, oilseeds, maize, potatoes, pulses, chilies, etc. The district is the largest producer of sugarcane in Manipur. Its cultivation is mainly confined to Thoubal, Wangjing, Kakching, Kakching Khunou and Wabagai. Although maize is grown throughout the district, it is cultivated as major cash crop around Serou, Pallel and Kakching belt. Oilseeds, mainly mustard seeds, are found all over the district. Recently cultivation of sunflower has also started. Vegetables such as cabbages, cauliflower, different kinds of peas, gourds, pumpkins, etc are cultivated here. Among the plantation crops, pineapples are the most important and are cultivated in the slopes of low hills and hillocks. Although tea plantation is yet to take its shape in the district, a blend of local variety is grown in Pallel and Waikhong area.

Another important sector of economy of Thoubal District is Animal Husbandry. Important livestock found in Thoubal District are cattle, buffaloes, goats, horses and ponies, pigs, dogs etc. There are several veterinary hospitals and dispensaries in the district giving benefits of immunization to the cattle. Significant progress have been made in the district in the direction of milk production, breeding of better varieties of cattle and poultry, and generation of employment through piggery and poultry development.

Fishing also contributes to the economy of Thoubal District. Fishing provides an important occupation for a large number of people in the district.