Agriculture is the chief contributor towards the economy of the district. Alwar occupies an important place in the agricultural production of Rajasthan state. The total geographical area of the district is 7, 82,897 hectares which is about 2.5 percent of the state. A number of crops arte grown here at Alwar. In the Kharif season, bajra, maize, jowar, Kharif pulses, arhar, sesamum, cotton, guar etc. are sown in about 3,29,088 hectares (42 percent). In the Rabi season wheat, barley, gram, mustard, Rabi pulses etc. are sown in about 4, 52,527 hectares (58 percent). Thus, the total cropped area of the district is 7, 81,615 hectares. The prime source of irrigation here are wells and tube wells. An area of around 192861 hectares is being irrigated by 26064 tube wells, and 57196 wells irrigate about 265169 hectares. By other sources like canals and tanks, an area of about 404 hectares is irrigated.
The average normal rainfall in the district is around 657.3 mm. The distribution of rainfall in the district is uneven and scattered. This results sometimes in flood and sometimes in draught situation which has a detrimental effect on agricultural production. The cropping pattern in Kharif and Rabi season is greatly affected by the uneven pattern of rainfall, and therefore agriculture as a whole is dependant on the vagaries of monsoon.
The industrial scenario in the district is on a gradual rise. There are a total of fifteen industrial areas developed by RIICO at Alwar district. Large and medium scale industries figure at 287. Most of them are located in the various industrial areas of Alwar district.
Foreign export plays an important role in the economy of Alwar district. A wide range of products are being exported by the industries established in Alwar district. These include
shaving blades, hand tools, surgical blades, synthetic blended fabrics, empty hard gelatin capsules, leather shoes, subscriber carrier system, tyre-tube, picture tube, chemicals, sanitary items, crockery, suiting, slate tile, different chemicals like calcium cyanide, alkalies, salt, PVC cable sanitary ware, readymade garments etc.
Keeping in view the location of the district, availability of most of the required infrastructural facilities and resources, a few units of large/medium scale apart of the units of small scale sector have been proposed for the district. The work of industrial promotion and development has been assigned mainly to the Rajasthan State Industrial Development and Investment Corporation Ltd. (RIICO). Apart from this main organisation, there are a number of other organisations, such as the Rajasthan Financial Corporation (RFC), Commissioner of Industries and the Rajasthan Small Industries Corporation Ltd. (RSIC), Rajasthan Consultancy Organisation Ltd. (RAJCON) etc, which are actively involved in promotional work for the development of industries in the Alwar district. Proposals have been made to organise industrial promotion campaigns at Alwar, Khaithal, Kherli and Shajanpur to create awareness among local people of the areas about the benefits of industrialization, along with the various package of concessions, facilities and services offered by the Government and other concerned institution for the development of industries in their district.