The prime occupation of the people of Mahbubnagar is agriculture. But due to frequent droughts which are caused in Mahbubnagar, several farmers are not able to carry out their agricultural activities in a proper manner and as a result they migrate to the nearby towns. The main crops that are grown in the region are paddy, castor, pulses and jowar. The main industries of the district are cotton textiles, power generation and ceramics. In the year 2002-03, the District Domestic Product was measured at Rs. 322619 lakhs.
Horticulture is also an important occupation for the people of Mahbubnagar. The fruits that are commonly grown in the district of Mahbubnagar are mango, sweet lime and orange
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