Economy of Valsad District in the state of Gujarat is for the most part based on industrial sectors such as chemicals, textiles, and paper and pulp industries. Textile and Chemicals have been the most important sectors of investments and employment in the district since the past few decades. Valsad district is promising as a horticulture hub of the State, which has witnessed significant production in food grains and crops. With more than three hundred medium and large scale industries, Vapi is a major industrial center in Valsad witnessing remarkable business activities. More than 10,716 units of small and medium enterprises (SMEs), involved in diverse sectors, such as textiles, engineering, chemicals, and paper industry etc., are present in the district.

More than a few private conglomerates are present in Valsad, including Wyeth, Aarti Industries, Atul industries, Welspun Polyesters India Ltd., Gujarat Heavy Chemicals Ltd. (GHCL), Raymond, United Phosphorus, Pidilite, Sun Pharmaceuticals, and Vadilal. Most important horticulture crops being produced in the district are cucurbits, chiku, mango, banana and sugarcane. In 5 talukas of the district, there are 10,716 units generating more than 58,641 jobs. Dye stuff and optical, chemicals and lathes, cotton textiles, and machine tools are the major small scale industry sectors present in Valsad district. Pardi taluka houses maximum number of SSI units with a healthy investment and providing jobs to over 25,776 people.

The proposed Delhi Mumbai Industrial Corridor (DMIC) and the nearness of the district with Mumbai and Surat have made it a key destination for industrial investments. The expansion of Maroli port into a new Greenfield site, which is to be used as an industrial port with an infrastructure of handling general and containerised cargo would help in attracting future investments. Industry sectors such as textiles, dye stuffs, wooden boxes, and lathes and machine tools are the supporting pillars of the financial system. They provide direct and indirect employment to over 7,000 people in the district. Tourism is another most important economic activity observed in the district. Udawada City is a significant tourist destination in Valsad district for the Parsi pilgrims, due to the presence of Fire Temple, which is a World Heritage Site.