Dahod is an economic center in the area due to its crucial location. The Dahod Market Yard is the biggest commodity markets of Gujarat second only to Ahmedabad, due to this many agro based industries have come up in Dahod. There are many pulse mills (Dal Mills), flour mills (Atta mills) and maize flakes (Makka Poha) manufacturing plants in Dahod. Most economic activities of Dahod are directly or indirectly related to agriculture.
Neighbouring towns like Jhalod, Sanjeli, Devgadh-Baria get their supply from Dahod. Dahod has been expanding rapidly by its economic growth. Dahod also has more than half of its area under Indian Railways, which is one of the largest railway township in India. Many people of Dahod are employed in railway loco workshop. Dahod is economically fit for different types of labour intensive industries. In Dahod summer season is extremely hot and there is water scarcity. There two main temples one in Desaiwada which is nearly 100 years old and one in Gujaratiwad. Nowadays Dahod is experiencing a change in its lifestyle
