The economy of the district is primarily agro-pastoral. Cultivation of high-value crops such as peas, potatoes, and exotic vegetables forms the backbone of local livelihoods.

Tourism has emerged as a major economic driver, especially during the summer months, with activities such as trekking, camping, and monastery tourism gaining popularity. However, the region lacks a large-scale industrial base due to its harsh climate, difficult terrain, and limited infrastructure. The district also relies on external skilled labour for various developmental activities.