Contrary to the thought that much of the local economy is now dominated by tourism, Ooty is still a supply base and market town for the surrounding area which is still largely dependent on agriculture, notably the cultivation of "English Vegetables" and "English Fruits" grown locally. This primarily consists of potato, carrot, cabbage and cauliflower and the fruits being peaches, plums, pears and strawberries. There is a daily wholesale auction of these products at the Ooty Municipal Market, which is one of the largest retail markets in India. Dairy farming has long been present in the area and there is a cooperative dairy in Ooty manufacturing cheese and skimmed milk powder. As a result of the local agricultural industry, certain research institutes are based in Ooty. These include a soil conservation center, livestock farm and a potato research farm. Efforts are being made to diversify the range of local crops with Floriculture and Sericulture being introduced in the local area, as well as the cultivation of mushrooms.
Hindustan Photo Films, the film manufacturer, is also a major industry in Ooty. This is located on the outskirts of the town at Indu Nagar. Human Biologicals Institute, which manufactures Human Rabies Vaccine is present in Ooty near Pudumand. Other manufacturing industries are located in the outskirts of Ooty. The most significant of these are in Ketti (manufacture of needles); Aruvankadu (manufacture of cordite) and Coonoor (manufacture of rabies vaccine). Cottage industries in the area including chocolate, pickle manufacture and carpentry. Homemade chocolates are popular among the tourists and the locals.
Though the local area is known for tea cultivation, this crop is no longer grown nor processed in Ooty. Tea is more economically grown at slightly lower altitude and hence Coonoor and Kotagiri are local centres of tea cultivation and processing
