The greatest natural resources of the municipality are the Drina River and Tara Mountain. The Drina is especially significant for its water power potentials. Specialists have estimated that it is possible to erect several hydroelectric power plants on this river. The annual flow of the Drina River is about 12.5 cubic kilometers of water. The Bajina Bašta Hydroelectric power plant was built on the Drina to harness that energy. The dam is located 12 km west of Bajina Bašta, near Perućac. Its average annual production amounts to 1,625 GWh of electric power. For the sake of better utilization of water power potential, the first reversible hydro-electric power plant in Europe was built in Zaovine, near the top of Tara Mountain.
Tara Mountain has long been a well-known tourist resort owing to its pleasant moderately continental and sub-continental climate. In 1981, Tara became a national park. It covers an area of 300 square kilometres and is the largest natural park in Serbia. The mountain has an abundance of flora and fauna. Apart from white pine tree, maple-trees and famous Serbian Spruce (Picea omorika), here you can find rare game including bear, roe deer, and chamois. The Drina River is a part of the local cultural identity and has great potential in rafting sports and fishing.
Moderate continental and mountainous climatic conditions are especially suitable for recovery and medical treatment of patients with bronchial asthma, chronic bronchitis, anemia and other diseases. Special attention is paid to tourism development and different tourist manifestations utilizing the clean and clear air of Tara Mountain.
Industry had developed fairly well in Bajina Bašta, but recently saw a major downturn due to economic hardships and the civil wars that raged across the region in the 1990s. The major employers before the outbreak of the Yugoslav Wars were:
Crni Vrh, a wood-processing and furniture factory (Open)
IKL, a manufacturer of metal parts and ball bearings (Closed)
Kadinjača, a textiles corporation (Open, but with limited capacity)
Tarateks, a ready-wear manufacturer (Closed)
Sloboda a manufacturer of electronics and household appliances (Closed)
Elektroizgradnja Bajina Bašta, makers of power line towers and industrial electronic equipment (Open)
Razvoj, a construction corporation (Open)
Laminat, a manufacturer of cardboard and cardboard containers (Closed)
Zemljoradnička zadruga Bajina Bašta, a farmers' co-operative - production of highest grade raspberry, as well as different kinds of fruits (plums, pears, apples), vegetables (potatoes, beans, cabbage, corn) (Open)
The closing of some of these companies threw a majority of Bajina Bašta's and surrounding region's population into unemployment. The only company still functioning well is Drinske Hidroelektrane (Drina Hydroelectrics), headquartered in downtown Bajina Bašta, owners of the "Bajina Basta" Višegrad hydroelectric power plants.
Thanks to exceptionally good climatic conditions, Bajina Bašta has exceptional potential for agricultural profit. High-quality types of tobacco and medicinal herbs flourish in the valley of the Drina, grown by Bajinovac, an agriculture company. Plums, used for the making of Bajina Bašta’s own regional juniper brandy Klekovača, grow in abundance. Wheat is a mainstay of the valley, growing well during both the summer and winter growing seasons. The Bajina Bašta municipality is famous for its raspberry farms.