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The economy of Alappuzha district is predominantly based on agriculture and marine products. Though the district is industrially backward, some traditional industries based on coir and coir products, marine products, handlooms, different types of handicrafts, toddy tapping, etc.have been dominating the scene from the very early times and they occupy an important place in the shopping scenario of the district. The district is known as the traditional home of coir industry in Kerala.

The easy availability of raw materials and existence of backwaters and canals suitable for the wetting of green husk and accessibility of transportation are the main factors for the development of this industry. Arabs had carried on trade in coir products from very ancient times. The manufacture of mats and mattings which have become major shopping attractions among tourists was first introduced in 1859 by Mr. James Durragh, an American who founded the firm M/s Durragh Smail Ltd., at Alappuzha with offices in London and New York.

Coir is the most important commodity manufactured(and exported) in Alappuzha, Kayamkulam, Kakkothamangalam, Komalapuram, Mannancherry, Muhamma and Cherthalai . Lime shell in Arookutty and Kodamthuruthu, Plywood in Chengannur, Keltron controls in Aroor, Potassium Chloride in Mavelikkara and coconut in Thanneermukkom are also worth mentioning and figure in the industrial map of Alappuzha. The other important commodities manufactured in these towns are copra, coconut oil ,glass, mats, marine food and matches.

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