Udupi is becoming a major city of Karnataka. People here have the highest average per-capita income in Karnataka according to a recent survey by a private firm.. Poverty rate in Udupi is fairly low when compared to Bangalore and other districts of Karnataka.
Udupi is also the birthplace of the Syndicate Bank and Corporation Bank. Udupi's economy depends mainly on agriculture and fishing. Small-scale industries like the cashew industry, and other food industries and milk cooperatives are the most prominent. There is no large-scale industry in Udupi.
The Karnataka Government had signed a memorandum of understanding (MOU) with the Cogentrix Light and Power Industry to set up a thermal power plant in the district at Nandikur. However, because of stiff opposition from citizens and environmentalist groups, the project has been temporarily suspended. An attempt by the Nagarjuna Power Corporation to set up a similar plant at nearby Padubidri also met strong opposition. Now, the power plant has not only been set up, it is generating 1,200 MW of power under the name of Udupi Power Corporation Limited (UPCL), a subsidiary of Lanco Infra, an Andhra Pradesh-based infrastructure major. The opposition, however, continues.
Manipal, a suburb of Udupi, is home to the headquarters of Syndicate Bank. It is renowned as an education and medical hub
