Davangere town is a major trading center in Central Karnataka. It was well acclaimed as the "Manchester of Karnataka" for housing many cotton mills and cloth business establishments. Its geographical location at the center of the State and good rail and road connectivity provides ample scope for trading. The surrounding hinterlands provide support to the businesses at Davangere. Around half of the Davangere District is irrigated, thanks to the Bhadra Reservoir. Many rich cash and food Crops like Rice, arecanut, Maize and cotton are traded here. Currently the major agro-industrial activity around Davangere revolves around rice and sugarcane, with a number of sugar mills in and around this area. The Shamanur Sugar Mills, situated in the Dugavathi village near Davangere, is a major industry in Davangere. Many of the rice mills are established in the industrial area near the Bypass Road. There are many rice mills making puffed rice and beaten rice in and around this town. Davangere is famous for textile mills. Shankar Textile Mills, Chigateri Mills, Chandrodaya Mills Ltd, Yallamma Cotton Woollen and Silk Mills Ltd, all contributed to the economic development of the city. The cotton mills which are existing till date are: Anjaneya Cotton Mill, Ganesh Mill, and Siddeshwara Cotton Mill. Davangere was a major cotton textile exporter during the 1960s until the 1980s. But most of the mills were shut down during the 1990s. Davangere has a big garment and clothing shop, i.e. B.S. Channabasappa and Sons. This is one of the biggest garment shop of Central karnataka with its branches spread all over the city
