The economy of the district is based on agro & food Processing, tourism, textile and mineral based industries (ceramics). The food Processing industry in the district has attracted 57% of the total investment in the district over the last two decades The district ranks first in the state in the production of vegetables contributing nearly 17.67% to the total vegetable production of Gujarat. It is the largest producer of potatoes in the state. Bajri, Maize, Tobacco, Castor oil, Jowar, Psyllium are the other major crops of the district. It is also one of the leading producers of Isabgul (Psyllium husk) in the country. It is also the 3rd largest producer of oil seeds in the state after Junagadh district and Jamnagar district.
The district has rich mineral reserves including limestone, marble, granite, building stone and china clay. It accounts for almost the entire marble reserves (99.3%) of Gujarat and contributes about 15% to the total production of limestone in the state.
Banaskantha District Central Co-operative Bank is one of the most important banks of Gujarat.
It has got prestigious State Agricultural University, Sardarkrushinagar Dantiwada Agricultural University, Sardarkrushinagar. The main agriculture is of Bajra crops.
In 2006 the Ministry of Panchayati Raj named Banaskantha one of the country's 250 most backward districts (out of a total of 640). It is one of the six districts in Gujarat currently receiving funds from the Backward Regions Grant Fund Programme (BRGF)
