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Niwari is one of the economically strong towns of Tikamgarh. This is due to its location on National Highway, its connectivity through railways and its proximity to border towns of UP like Jhansi. It has flourished as an industrial centre and there is a lot of scope of further expansion. Being a tehsil town, it has various govt. offices. Agriculture industry of Niwari is quite famous and is a major economic factor in the town. Arjada Talab with its large area is another attraction of the town. It practically divides the states of UP and MP.

Niwari is a class III town which was established as Nagar Panchayat on 26th May 1975. Presently the town has a population of about 23473 which in divided into 15 wards with approximate Municipal area of 14.09 sq km, which comes out to be 13.52 Sq Km on the basis of spatial analysis done by the consultant.