Pondicherry Economy

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Pondicherry is an Indian Union Territory, located about 150 km from Chennai, on the Coromandel Coast. Pondicherry economy is largely based on engineering, food processing, chemicals, metals, tourism, textiles, and information technology.

Agriculture and Fishing

Agriculture and economy are the mainstays of Pondicherry's economy. Almost half of the population in Pondicherry is dependent on agriculture for livelihood. Rice, pulses, sugarcane, coconuts, and cotton are some of the crops grown extensively in Pondicherry. Due its 50 km coastline, fishing is one the main sources of livelihood in Pondicherry, where there are nearly 30 fishing villages.


Pondicherry has nearly 5,500 small scale industries apart from 23 large scale and 80 medium scale industries. Taken together, these provide employment to more than 50,000 people. Some of the significant industries in Pondicherry are chemicals, textiles, light engineering, metals, and food processing. Special mention needs to be made of the tourism sector in Pondicherry. Due to its French past, coastal location, Aurobindo ashram, Auroville, cuisine, and resorts, Pondicherry attracts tourists by hordes! In 2006 alone, more than 300,000 tourists from all over the world visited Pondicherry. As a result, Pondicherry's investment opportunities are tremendous – hotels, resorts, amusement parks, and spas, all are lucrative sectors. The Indian government supports investment in Pondicherry by increasing subsidies.

Sectors like eco-tourism, footwear, and marine products are some of the areas where an investment boost is expected in Pondicherry.

Facts and Figures

Pondicherry has a gross domestic product (GDP) of US$1.399 bn (2004-05). The per capita income in Pondicherry is US$766. The total value of all industrial units in Pondicherry is roughly ` 10,000 crore.

Upcoming Projects

Since Pondicherry enjoys several government incentives, plenty of projects have been planned for improving its socio-economic infrastructure. Some of them are:
  • Chunnambar Water Front
  • Laser show complex
  • Film city
  • Yacht Marina
  • Lagoons and Oceanarium
  • Handicraft bazaar
  • Botanical garden
Corporate Giants

Several corporate entities such as IBM, Wipro, MRF, HP, HLL, and LG have set up shop in Pondicherry due to the infrastructural advantages it offers.