Though on the outset, Belgaum seems to be an agglomeration economy, but it is not, despite having a large no of industries, belgaum still has agriculture to support it.

Belgaum is an important location for vegetable trading, fish, wood & mining resource trading in north Karnataka. Rich deposits of bauxite are found in Belgaum district, and have led to the creation of the (INDAL) Indian Aluminium Company for production of aluminium. Additionally, uranium deposits have recently been found in Deshnur, a small village near Belgaum.

From the early 1970s, Belgaum began developing as an important centre for the manufacture of heavy machine tools, including the manufacture of high pressure oil hydraulics.

Trade flourishes in Belgaum, and many areas of the city are dedicated to certain kinds of trade. For example, almost all automobile-related trade and manufacture happens in the Fort Road area of the city. The Raviwarpeth area is known as the wholesale market which sells commodities like grains, tea, etc.

Belgaum also is a strong industrial hub for Machine Shops catering to Automotive Manufacturing, Especially in Crank-shaft machining. Belgaum has friendly conditions for foundry and casting businesses. The geographical location of the city is an advantage since it is situated right in between Bangalore and Mumbai/Pune to support the major automotive and aerospace companies.