The district has seven industrial areas. Two of them are located in and around the town, which are in operation.

Slate Pencil– The state and the Mandsaur district ranks first in the country in terms of slate reserves. There are approximately 100 to 125 small scale industrial units to prepare slate pencils in the town.

Large scale industries in the district include sugar mills, starch factory, cotton spin factory, steel industry, Soyabean based industry etc. While various small scale industries includes incense and candle stick manufacture, manufacture of mats, polythene, twines, furniture, jiggery, card board, bakeries, flour mills, oil mills etc.

The region has agro based export units especially involved in export of garlic flakes and powder. Delhi-Mumbai industrial corridor alignment passes through this region and benefited area of 100 sq km falls under the Neemuch-Nayagaon industrial belt.