In earlier times, the entire population was dependent on trade with the Tibetans. Goods from India like handmade carpets (better known as 'Dan' locally) and spices were traded in exchange for clothes, eatables, etc. Soon after the Indo-Sino war of 1962, all trade relations with Tibet were snapped. The war broke the lifeline of the place - trade, the only means of earning for the Dharchula residents. This difficult time forced the people to look for alternate means of earnings. Soon the local population engaged themselves in farming (terrace farming), small businesses and cattle farming. Catering to the tourism requirements is still an unexploited opportunity the youth population is looking forward to fulfill. However, it is only after the government's intervention and help that good tourism facilities can develop in the town and surrounding areas, thus creating an employment opportunity for many. Today, after the increased awareness about the job opportunities available beyond Dharchula and the surrounding hilly towns, the local people are venturing into government jobs and businesses all over the country, and also overseas.