Commercial
Rajapalayam has no organized or planned commercial area expect one municipal market.  The commercial activities are taking place on both sides of madurai - tenkasi road.  All type of commercial activities like wholesale retail business of all kinds such as textile show rooms, leather goods, furniture shops, automobiles, lodges are found along the main roads.  The total area works out under commercial use is 36.75 hectares which constitutes 3.86% of town and 4.81% of the total developed area.  Commercial area includes 7 theatres and 5 kalyanamandapams.

Industrial
The area under industrial  use  is  81 hectares which constitute about 10.73% of the total developed area and 8.51% of the total area of the town,textile mills, ginning factories,power room processing factory, surgical cotton mills and some match industries are the major industries at rajapalayam. Giowri house metal works, sriram products, sri ramalinga mills, alamelu spinners ginning factory, rajapalayam cotton processing factory, sri jayajothi & co ramraja surgical cotton mills are some of the important  factories in the town.