Traditionally, Mysore has been home to industries such as weaving, sandalwood carving, bronzework and the production of lime and salt. The planned industrial growth of the city and the state was first envisaged in the Mysore economic conference, held in 1911. This led to the establishment of industries such as the Mysore Sandalwood Oil Factory in 1917 and the Sri Krishnarajendra Mills in 1920.

In a survey conducted in 2001 by Business Today, the business arm of India Today, Mysore was ranked the 5th best city in India in which to conduct business. Mysore has emerged as the hub of the tourism industry in Karnataka, attracting about 2.5 million tourists in 2006.

For the industrial development of the city, the Karnataka Industrial Areas Development Board (KIADB) has established four industrial areas in and around Mysore and are located in Belagola, Belawadi, Hebbal (Electronic City) and Hootagalli areas. The major industries in Mysore include BEML, J. K. Tyres, Wipro, Falcon Tyres, L & T and Infosys.

Since 2003, information technology companies have been creating bases in Mysore, with the city contributing Rs. 760 crores (US$190 million) to Karnataka’s Rs. 48,700 crores ($12.175 billion) IT exports in the financial year 2006–2007. Infosys has established one of the largest technical training centres in the world and Wipro has established its Global Service Management Center (GSMC) at Mysore. Non-IT related services have been outsourced from other countries to companies in Mysore.

The industrial sector in the city experienced setbacks when the automobile manufacturer Ideal Jawa and the Sri Krishnarajendra Mills closed their operations. Revival efforts, such as the takeover of the Krishnarajendra Mills by the Atlantic Spinning and Weaving Mills Ltd. have been made, but these attempts have run into other problems.