The economy of District Basti is based on agriculture and agro based small -scale industries. There are many small-scale industries which offer employment to the local people. Sugar factories, cottage industries and small-scale industries including the manufacturing units of brassware, iron and carpentry goods, agricultural implements, bricks, agro-products, foot-wear, soaps, candles, and pottery are present here. Basti is also famous nationally for Bamboo, Eucalyptus (Eucalyptus Teritrornis), Mango and Shisham (Dalbergia Sissoo). Three sugar factories are housed in the district. Sugarcane, maize, paddy, pulses, wheat, barley and potato are commonly cultivated. In 2006 the Ministry of Panchayati Raj named Basti one of the country’s 250 most backward districts (out of a total of 640). It is one of the 34 districts in Uttar Pradesh currently receiving funds from the Backward Regions Grant Fund Programme (BRGF). Govt. of India, Ministry of Rural development is implemented Mnrega (Mahatama Gandhi National Rural Employment guarantee act. With the help of UP Govt to improve the economy of the poor families.