The economy of Katwa is based on agriculture and agro-related trades. The fertile soil of the surrounding areas is enriched by the alluvium from the Hooghly, Ajay and Damodar rivers. The major crops that are farmed in the countryside surrounding Katwa include rice, jute, mustard, sugarcane and various tropical vegetables. Katwa is an important center for marketing the region's agricultural products and for providing retail and consumer services to the surrounding population. Industries are limited to cottage industries and small-scale agro-related industries, e.g. rice mills, jute products, etc.