The economy of Kadanad is dual-pillared, relying heavily on commercial agriculture and foreign remittances. The cost of living is moderate, typical of rural/semi-urban Kerala, though land prices can be relatively high due to population density and NRI investments.
Because there are few large-scale commercial or industrial employers within the village itself, daily economic activity is driven by small retail, agricultural trade (specifically rubber boards and collection centers), and the service sector. The steady inflow of remittance money has led to elevated living standards, visible in the high quality of housing and private vehicle ownership.