[4][5] The economy of Salem is mostly influenced by Information Technology, Steel, Textile industry, Agriculture and others.

Gross Domestic Product (GDP) of Salem city is 12,134.10 (In Crore Rupees) and growth rate is 10.31% (YOY).

ELCOT has established an IT SEZ at Jagirammapalayam village in an extent of 53.33 acres of land at an investment of ₹ 40.53 crore.

[9] As the monorail market is estimated to be ₹72,000 crore (US$10 billion) in India, the then Governor of Tamil Nadu S. S. Barnvarilal announced in Legislative assembly that the Government of Tamil Nadu has decided to do a feasibility study for introducing monorail system in Salem[10] along with Coimbatore, Trichy and Madurai.

New construction in areas under the Salem Urban Development Authority needs their approval to start work.