Economy of Nagaon District, in terms of natural resources endowment, is purely agrarian. In fact, agriculture is the backbone of the entire economy of this district of Assam. It is providing livelihood to almost 78 percent of the total population. Rice is the staple food of the inhabitants and paddy is the principal crop cultivated in the district. Floods, however, are a major obstruction in the development of this sector. However, measures for the development of this prime sector of economy have been taken. Besides agriculture, economy of Nagaon District also includes another major sector that is fisheries.

Assam gets a lot of rainfall still the state produces just about 5.7 percent of the total freshwater fish production in India. Nagaon district accounts for near about 9 percent of the total fish production of the state. Further, there is a visible dominance of imported fish in the organized markets. There are around 20 small and big rivers, large areas of water bodies, swamps and beels in Nagaon District having unique potential for development of inland fisheries. The district also has strong fishermen population. Another advantage that the district enjoys is high water table. Moreover, it has been observed that more and more people are opting for fisheries as a livelihood option.

The economy of Nagaon District also suggests that there has been a lot of development in aquaculture technologies during the last few decades. However, absence of fishing on commercial principles characterizes the low level of productivity. As the productivity levels are low, profits in the sector get reduced. Further, this sector also lacks proper funding. Animal husbandry is another major sector contributing to the economy of Nagaon District. Production is less than the demand in the district.

The climatic condition of the district is suitable for poultry farming. Most of the poultry birds are reared in small units. Non-availability of quality poultry feed in the local market along with high cost of ingredients and limited supply of essential medicines are the major constraints for development of this sector. The low productivity of the dairy animals is apparently due to poor genetic character of the local cows. However, considering demand and supply in the district, there is ample scope for development of animal husbandry in the district, particularly in rural areas adjacent to urban and semi-urban areas.

The handloom industry is the most important cottage industry in Assam and it is also a major part of the economy of Nagaon District. It is closely associated with art and culture of the society. Weaving of fabrics is a way of livelihood of large number of rural families and artisans. However, this important sector is yet to be exploited commercially. Economy of Nagaon District comprises several industries like tea industry, jute industry, sugar mills, etc. Tea manufacturing is the predominant industry in the district. In Nagaon District, there is good scope for agro-based industries including pisciculture and sericulture. However, there are several factors like power shortage, seasonal floods, shortage of industrial labour, etc. hinder the development of the various economic activities in this district.

Last but not the least; handicraft is an important cottage and household industry sector and a significant part of the district`s economy. It is largely emphasized for providing self-employment opportunities in the rural areas.