The economy of the Meenachil River basin is heavily agrarian, supplemented by a booming tourism sector. The river provides crucial irrigation for cash crops, particularly natural rubber, which forms the backbone of Kottayam's wealth. The river also supports inland fishing and local commerce.
In the lower reaches around Kumarakom, the river and its backwaters are a massive economic driver through eco-tourism, luxury resorts, and houseboat cruises. Despite a high cost of living compared to other rural parts of India, the region boasts a relatively high median income, bolstered by agricultural exports and significant remittances from the large expatriate community from the Kottayam district living in the Middle East, Europe, and North America.