Dhangadhi serves as the primary commercial and industrial hub for Sudurpashchim Province and one of the fastest developing cities of Nepal.

[10] It got its first democratically elected mayor who was affiliated with the Nepali Congress Kishor Kumar Bam (1964-2014) who held his office for full term.

[11] The city has health care facilities, a number of parks, private schools, colleges, and internet service providers.

A number of haat bazaars are held each week in different parts of the town, where farmers from the rural hinterland set up stalls to trade agricultural products, spices and handicrafts.

Every year, the Kailali Chamber of Commerce and Industry organizes Sudurpaschim Mahotsav in Dhangadhi on the month of Mangsir.

The fertile plains surrounding the city make it an ideal location for cultivating crops such as rice, wheat, sugarcane, maize, and vegetables.

The region's agricultural produce not only serves the local market but also contributes to the national supply chain.

These include manufacturing units, food processing plants, and trading enterprises, contributing to economic growth and employment opportunities.

In terms of ethnicity/caste, 36.8% were Tharu, 20.5% Chhetri, 17.4% Hill Brahmin, 6.1% Thakuri, 5.7% Kami, 2.6% Magar, 1.6% Damai/Dholi, 1.5% Musalman, 1.2% Sarki, 1.1% Newar, 0.9% Tamang, 0.5% Terai Brahmin, 0.5% other Dalit, 0.5% Sanyasi/Dasnami, 0.4% Kathabaniyan, 0.3% Gurung, 0.2% Halwai, 0.2% Lohar, 0.2% Marwadi, 0.2% Rai, 0.2% other Terai, 0.1% Badi, 0.1% Dhanuk, 0.1% Hajam/Thakur, 0.1% Kalwar, 0.1% Kayastha, 0.1% Kurmi, 0.1% Limbu, 0.1% Musahar, 0.1% Teli, 0.1% Yadav and 0.1% others.

Local transport includes Cycle Rickshaws, Taxis and Public City Buses.Mahakali Highway connects Dhangadhi to different parts of Far western Nepal.

[citation needed]Dhangadhi Airport is located 10 km from the administrative center and about 660 kilometers west of Kathmandu.

[25][26][27] It operated flights to Kathmandu, Pokhara, Bajura, Dipayal Silgadhi, Bajhang, Surkhet, Achham.