Palladam is a major town with large source of income collected from the business community, which includes Textile industries, Poultry farms, and Agriculture.

Palladam also has a significant number of North Indians who have come as labourers for employment in textile industries.

Buses are available very frequently from Palladam to Pollachi, Vellakovil, Udumalpet, Tiruppur, Coimbatore, Karur, Tiruchy, Dharapuram and Madurai.

SCAD Institute of Technology established in 2012 offers courses in Bachelor of Engineering in various disciplines including Mechanical, Computers, Civil, Electrical, Electronics and Communications.

Some of them include- Kannammal Institution, Blue bird, Swami Vivekananda, Government Higher Secondary School, Adharsh, Kingsberry, Infant Jesus and so on.

The economy of Palladam and its surroundings is mainly based on textile industry, agriculture and poultry farming.

Most of the major textile houses are set up as vertically integrated units enabling them to produce clothing at a better quality and competitive price.

The region also attracts labourers from other part of the nation, for weaving more than 4,50,000 power looms are working around palladam.

They provide the essential raw materials for the Textile industry in and around Palladam as well as Exports to various other countries.

The PHWP acts as a sourcing hub for the global industrial fabrics, home furnishing, and garments market.

Leading strategic and project management support to the integrated textile parks, is IL&FS CDI, a leading multidisciplinary conglomerate with interests in infrastructure, finance, capacity building initiatives, technology and marketing.

The chickens raised here are transported to nearby states and these companies have also set up similar contract farming in other parts of the nation.

The association with Agriculture hasn't largely diminished over the years due to the continuous involvement of community & the participation from the younger generation.

Currently this industry is not doing well due to insufficient and un-timely rains along with the decrease in the ground water levels by significant amount in the recent years.

The surrounding areas has seen a surge in wind turbine installations because of the location of the town across the Palghat Gap.