Belgaum is the commercial hub and divisional headquarters of north Karnataka, standing second to Bangalore in terms of overall exports in the state (mainly automotive industry). Known as the "Bread Basket / Rice Bowl" of north Karnataka, it is an important location for vegetables, fruits, meat, poultry, fish, mining production, and wood (due to heavy rainfall, rivers and the abundance of water). Trading in north Karnataka is mainly with Goa along with major cities like Pune and Bangalore. Rich deposits of Bauxite are found in Belgaum district, and have led to the creation of the (HINDALCO) Indian Aluminium Company Aditya Birla Group for the production of aluminium. Additionally, uraniumdeposits have recently been found at Deshnur, a small village near Bailhongal town. Belgaum is a major producer of milk in the state, almost 1/3 or 30% of state's production and has the highest number of sugar factories; Belgaum, being home to Ugar Sugar Works, Ugar and Renuka Sugars and other large scale sugar factories, is also known as Sugar Bowl of Karnataka.
From the early 1970s, Belgaum began developing as an important centre for the manufacture of heavy machine tools, including the manufacture of high pressure oil hydraulics.
Belgaum is also a foundry hub of the Karnataka state having about 200 foundries producing more than 70000 tons of automotive and industrial castings of ferrous base and the supporting ancillaries like CNC and conventional machine shops which finish the castings that are produced in Belgaum.
Belgaum is one of the major textile centres in the State with over 50,000 powerlooms (including unregistered units). Almost all of some areas in old Belgaum at Vadagaon, Khasbagh and Shahpur are engaged in business with power looms. Belgaum is known for Belgaum saris which are sold under different brand names. Over 30,000 people are directly dependent on the powerlooms. There are also ready-made garment units, including export oriented, besides
