Manali business and economy has been developing at a very fast pace. The economy of Manali is mainly based on horticulture and tourism. A number of fruits like pears, apples, orange was first grown in Manali by British settlers who realized that the climate and the soil of the region was perfectly suitable for the cultivation of fruits. The fruits that are grown in Manali fulfill the local requirements and also in other parts of India also.
Tourism industry of Manali plays a vital role in the economy of the state. The natural beauty of the region attracts huge number of tourists, thus generating both jobs and money for the local people. The city is popular among the tourists for numerous temples, beautiful valleys, streams, rivers etc. The main economic activities in Manali are tourism, hospitality and other associated industries, like handicrafts industry, hand loom and power loom industry. The city has many Medium Scale Industries and Small Scale Industries engaged in the production of flour mills, spinning mill, mineral water bottling, food processing and ready made garments etc. Some of the very common businesses of the region are canned fruits, bottled fruit juice and other products like pickles, jams and jellies