Gadhinglaj's major businesses are trade, sugar production, and red chili production. Thanks to its proximity to Goa and Sindhudurg, it serves as a market hub. MIDC is developing heavy and light industry in the area. The trade sector of the city's economy is booming and eclipsed sugarcane and jaggery production as the city's biggest economic segment in 2000. Real estate is another prosperous sector in Gadhinglaj due to the city's booming trading and industrial sectors, ideal location and climate, developed infrastructure, and abundant electricity and water supply. These qualities have led to heavy investment in the city's real estate by outsiders, mainly from Kolhapur, Satara, Pune, Mumbai, and Nagpur.