The city is a major hub of industry and agriculture. It is rich in natural resources like granite and marble. The main export items are cement, sugar, PVC pipes, ethanol, oil, cotton, mangoes and rice. The seed industry has been flourishing for 30 years.
It is also hub for major educational institutions like "1882 started SPG High school", Holy cross High school, Municipal High School,Good Shepherd English Medium School, Keshava Reddy Educational Institutions, RGM Engineering College, Dental & Medical colleges. SPY Reddy Junior, Degree and PG colleges Ramakrishna Reddy Degree & PG colleges
Nandi group is the major exporter of Nandi Pipes, nandi dairy, panyam cement, Naidu Group of Companies AP Dairy with "Milk Products Factory" of Vijaya brand Sugar Factory along with other Companies in different sector.
The city is developed in industries like.
Nandyal city is surrounded by big villages like Mahanandi,Gajulapalli,Yallur, Sirvel,tamadapalle,velgode etc. Much of the Nandyal economy is sustained by people from the villages settling in the city to support their children's education. Nandyal is also a commercial hub for all the surrounding villages.
But much of Nandyal roads are very narrow, dusty and polluted.
The surrounding villages grow commercial crops such as Cotton, Jowar, Rice are main along with the other crops
