There is no significant industry in Taunggyi. It used to be the trans-shipment point for many of the agricultural products of southern Shan State. However, due to recently imposed zoning regulations, most of these operations have been moved to the surrounding new town of Ayetharyar.
Being the capital of the Shan State, Taunggyi hosts many government offices. There is a museum in town which has displays on the Shan culture, as well as items of historical interest, such as belongings of the Sawbwas. The city is also the headquarters of Eastern Command of the Tatmadaw (Burmese Army), and the army occupies a significant portion of the northeast area of the city
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