The economy surrounding the Lalam River is deeply tied to agriculture and the commercial activity of Pala town.
* **Rubber Industry**: The region is known as the natural rubber hub of India. Many local businesses, traders, and cooperatives along the river deal in rubber procurement and processing. * **Lalam Market**: Historic commercial trading happens in the markets near the Lalam bridge, where local spices, agricultural produce, and textiles are sold. * **Retail and Banking**: The banks of the river, particularly where it intersects with the main town, are lined with regional bank branches, jewelry stores, and local retail shops.