That Salem dates to at least two thousand years ago is evident from the discovery of silver coins from the Roman Emperor Nero Claudius Caesar Augustus Germanicus (37–68 CE) found by Koneripatti of Salem in 1987.

Now Salem has been developed a lot by building many bridges and is considered to be the Smart city.

In the recent past, home furnishing items are also woven, mainly for export purposes.

More than 75,000 handlooms are working and the total value of cloth produced per annum is estimated at ₹ 500,000 million.

The history of handloom and spinning mills dates back to pre-independence period in Salem.

Small scale hand dying units were started around the region to the industry.

New and increased number of Power Loom units were mushroomed in the places like Gugai, Ammapet, Attayampatti, Mallasamudram, Vennanthur, Magudanchavadi, Rasipuram, Komarapalayam, Pallipalayam, Jalakandapuram and Elampillai.

The Salem plant is the largest special steel plant in India aims to develop the Kanjamalai, Kavuthimalai and Vediappanmalai iron ore mines in Tamil Nadu on receipt of requisite approvals to improve raw material security.

The plant is continuously working to develop special grades for critical automotive applications.

[15][16] The Madras Aluminium Company Ltd (MALCO) is part of Vedanta Resources Plc, a London Stock Exchange listed FTSE 100 diversified metals and mining major.

MALCO has a state-of-the-art, coal-based Captive Power Plant at the same location which was commissioned in the year 1999.

Salem has one of the largest Magnesite, Bauxite and also Iron ore deposits in India.

Narasus coffee one of the famous coffee in Tamil Nadu, Nandhi Dall Mills the oldest flour mill company, BSP refineries (Usha Refined Sunflower Oil) are other few companies have their presence in Salem.

Being one of the fastest growing tier II cities, the Tamil Nadu government and ELCOT are planning to establish an IT park in Salem covering about 160 acres (0.65 km2).

[20] There is an exclusive Electrical and Electronics Industrial Estate in the Suramangalam area of Salem city.