The economy of Sivakasi is dependent on three major industries: firecrackers, matchbox manufacturing, and printing. The city has 520 registered printing industries, 53 match factories, 32 chemical factories, seven soda factories, four flour mills and two rice and oil mills. The city is the nodal center for firecracker manufacturing at the national level. In 2020 there are around 1070 registered firecracker manufacturing companies in sivakasi and 8 lakh (800,000) people were directly and indirectly employed by the industry. Some of the private enterprises had an annual turnover of . In 2011, the combined estimated turnover of the firecracker, matchbox making and printing industry in the city was around . Approximately 70% of the firecrackers and matches produced in India are from Sivakasi. The hot and dry climate of the city is conducive to the firecracker and matchbox making industries. The raw materials for these industries were procured from
Sattur earlier but were discontinued due to the high power and production cost. The source of raw materials is
Kerala and
Andaman. The paper for the printing industry is procured from various states. The city is a major producer of diaries, contributing to 30% of the total diaries produced in India. Printing industry in the city was initially utilized for printing labels for the firecrackers and later evolved with modern machinery to grow as a printing hub. In 2012, all the industries suffered 15–20% production loss due to power shortage and escalating labor cost. class
Firecrackers being made|right|250px The major issues in the fireworks industry in Sivakasi is child labour and frequent accidents. In a blast in 1991 in a factory, 39 people were killed and 65 others were injured. In July 2009, more than 40 people were killed in a fire accident in a firecracker unit. The police traced out unregistered units and irregularities that led to the accident. In a fire accident in August 2011, seven people were killed and five were seriously injured. A similar fire accident and blast in a private unit in September 2012 killed 40 people and injured 38 others. The common reasons cited for the accidents are inadequate training of workers and supervisors involved in different stages of production and marketing of firecracker items. Child labour in the industries, especially in matchbox making factories, was at its peak during the 1970s and 1980s. Poverty and lack of farm produce were stated as the main reason for child labour. The employers also preferred children because of ease of management, discipline, and lack of labour unions. The children in these industries suffered from a backache, neckache, tuberculosis, malnutrition, gastrointestinal disorders, dermatitis, respiratory disorders, over-exhaustion, burn injuries and water-borne diseases due to exposure to harmful chemicals in the work environment. The situation of the child labour came to light during an accident of a bus transporting the children in 1976. The central government appointed a one-man committee under Harbans Singh in 1978, who reported abolishing child labour would seriously impact the economy of the region. The National Policy on child labour was formulated by the central government in August 1987, aiming at the rehabilitation of children withdrawn from these factories. In 1988, the union labour ministry initiated a programme for providing informal education, free healthcare and free lunch for children working in the factories. The
Supreme Court of India, in a judgement, ruled in December 1996 indicating provisions for preventing child labour like compensation for the child employed, employment to the adult members of the family and contribution to the corpus fund by the state government. ==Transportation==