Chengalam is predominantly an agricultural and animal husbandry based economy with a few industrial areas.

Child Sex Ratio for Chengalam as per census is 1046, higher than Kerala average of 964.

[3] Chengalam village has higher literacy rate compared to Kerala.

People from the neighbouring villages of Cherpunkal, Poovarany, Pala, Kanjirappally, Kozhuvanal and Anickadu started occupying the area in the 18th century.

The area belonged to the then Thiruvarppu Devasm and was known as "Chenkalkulam" as there was a pond hewn out of "Chenkal".

It is believed that the pond was built to gather water needed for the annual homam, rituals to appease the deities.