Employment is largely driven by the government and tourism. Education and horticultural produce processing, comprise most of the remainder.
In addition to being the local hub of transportation and trade, Shimla is the area’s healthcare centre, hosting a medical college and four major hospitals: the Indira Gandhi Hospital (formerly known as Snowdown Hospital,) Deen Dayal Upadhyay Hospital (formerly called Ripon Hospital,) Kamla Nehru Hospital, and Indus Hospital. The city’s development plan aims make Shimla an attractive health tourism spot.
Hotel industry is one of the major source of income generation for the city. Shimla leads the list of Indian cities with the highest ranked hotels.
Government is trying to promote technology and IT sector as the new area for growth and promotion although not many companies have yet settled in Shimla. Two notable companies that are registered in Shimla are Avant-Garde Digital, an international company, and Instablogs, a company that deals with media publishing.