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The current metropolitan limits of Kochi include the mainland Ernakulam, old Kochi, the suburbs of Edapally, Kalamassery and Kakkanad to the northeast; Tripunithura to the south east; and a group of islands closely scattered in the Vembanad Lake. Most of these islands are very small, varying in extent from six square kilometre to less than a square kilometre (1,500 to less than 250 acres).

Kochi is the economic capital of Kerala by volume of trade; though, unlike other South Indian cities, Kochi has been slow to industrialise. In recent years the city has rejuvenated from its economic stagnation and has witnessed heavy investment, thus making it one of the fastest-growing second-tier metro cities in India. The economy of the city can be classified as a business economy with emphasis on the service sector. Major business sectors include gold and textile retailing, seafood and spices exports, information technology (IT), tourism, health services, banking, shipbuilding, and the fishing industry. The economy is mostly dependent on trade and retail activities. As in most of Kerala, remittances from non-resident Indians (NRI)s is a major source of income.

The city also houses Kerala's only bourse—the Cochin Stock Exchange. Kochi is a major destination for IT and ITES companies, ranked by NASSCOM as the second-most attractive city in India for IT-based services. Availability of cheap bandwidth through undersea cables and lower operational costs compared to other major cities in India, has been to its advantage.

Various technology and industrial campuses including the government promoted InfoPark, Cochin Special Economic Zone and KINFRA Export Promotion Industrial Park operate in the outskirts of the city. Several new industrial campuses for research, trade and development in biotechnology, electronic hardware and information technology are in various stages of construction in the suburbs of the city. Prominent among them are the Sobha Hi-tech city at Maradu and the Smart City at Kakkanad, which on completion, would rank among the largest such ventures in the country.

The Cochin International Airport is also in the process of setting up an aerotropolis at Nedumbasserry. Eloor, situated 17 kilometres north of the city, is the largest industrial belt in Kerala, with more than 250 industries manufacturing a range of products including chemical and petrochemical products, pesticides, rare earth elements, rubber processing chemicals, fertilisers, zinc and chromium compounds, and leather products.