Xiangtan's economy is diversified across manufacturing, food processing, and tourism. The Xiangtan Economic Development Zone has attracted major industries including new energy vehicles, electronics, and machinery manufacturing.
The city is famous throughout China for its betel nut industry, which employs tens of thousands and generates billions of yuan annually. While increasingly regulated due to health concerns, it remains a significant economic sector.
Agriculture in the surrounding counties produces high-quality rice, tea, and freshwater fish from the Xiang River system. Food processing — particularly pork products and traditional confections — is a notable industry.
Tourism centered on Shaoshan is a major economic driver, with millions of domestic tourists visiting annually. The Qi Baishi brand also attracts cultural tourists, and the Panlong Grand View Garden draws garden enthusiasts.
Xiangtan benefits from its proximity to Changsha (only 40 minutes by high-speed rail), forming part of the Changsha-Zhuzhou-Xiangtan metropolitan area — one of Central China's most dynamic economic regions.