Kovilpatti is both an industrial and commercial town. It is the gateway for entering into Tuticorin and Tirunelveli. Kovilpatti is one of the largest taluk which brings revenue to the district. Now it has been split into Kovilpatti Taluks and Ettayapuram. It is famous for match factories. There are also textile industries in the city. It is one of the major producer of matchboxes in India an in fire works it is second, next to Sivakasi. Initially the town is not developed so much. The town is covered by dry lands and rocks. The climate here is very hot during summer. It receives low rainfall compared to other towns. So compared to agriculture the industries here develop very faster here because of cheap labour and dry climate. The black soil and dry climate favours the growth of cotton. So the cotton business and spinning mills are developing in and around the town. The two predominant mills are Lakshmi Mills and Loyal Textiles which gives employment to 1200 workers. Above all there are 17 printing press, 7 ginning factories, 4 flour mills and 10 rice mills in the city. An industrial Estate is being built outside the town.