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Erattupetta is historically and currently a bustling commercial hub, primarily driven by agriculture and trade. Known as the gateway to the high ranges of Kottayam and Idukki districts, it is a major trading center for hill produce, especially natural rubber, spices (like pepper and cardamom), coconut, and areca nut. The town's central business district is lined with wholesale merchants, textile showrooms, jewelry stores, and retail outlets. The local economy is heavily supported by small-to-medium enterprises (SMEs), agricultural cooperatives, and remittances from the significant expatriate community working in the Middle East.

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