Thodupuzha's economy is driven by agriculture, business and small industries. Two key economic areas that may change thodupuzha's face are technology and tourism.The planned developments in Thodupuzha after the changeover from Taluk to Municipality status has changed the face of thodupuzha a lot in last decade.

The new private bus stand,Temple ByPass road ,kanjiramattom By Pass road, Mini Civil Station,New Bridge ,Municipal Park,Shopping complex at bus stand,New Townhall complex etc are noted landmarks to change the look of thodupuzha to a planned city.

Thodupuzha's neighbouring villages are fertile. Farmers in Thodupuzha raise a number of crops - rubber, coconuts, rice, pepper, coco, arecanuts,cashew, topioca, bananas, ginger, pineapple, turmeric, etc. In recent years thodupuzha has showed more interest in promoting tourism. Increasing number of resorts and hamestay facilities shows thodupuzha's attire to become a strong tourism hub of kerala