Varanasi - Economy

Economy

Approximately 29% of Varanasi's population is employed. Of those who are employed, approximately 40% work in manufacturing, 26% work in trade and commerce, 19% work in other services, 8% work in transport and communication, 4% work in agriculture, 2% work in construction, and 2% are marginal workers (working for less than half of the year).

Among manufacturing workers, 51% work in spinning and weaving, 15% work in metal, 6% work in printing and publishing, 5% work in electrical machinery, and the rest work in a wide variety of industry sectors. Varanasi's manufacturing industry is not well developed and is dominated by small-scale industries and household production.

Silk weaving is the dominant manufacturing industry in Varanasi. Weaving is typically done within the household, and most weavers are Momin Ansari Muslims. Varanasi is known throughout India for its production of very fine silk and Banarasi saris, brocades with gold and silver thread work, which are often used for weddings and special occasions. The production of silk often uses bonded child labour, though perhaps not at a higher rate than elsewhere in India. The silk weaving industry has recently been threatened by the rise of power looms and computer-generated designs and by competition from Chinese silk traders.

In the metal manufacturing sector, Diesel Locomotive Works is a major employer. Bharat Heavy Electricals Limited, a large power equipment manufacturer, also runs a heavy equipment repair plant. Other major commodities manufactured and traded in Varanasi include hand-knotted Mirzapur carpets, rugs, dhurries, brassware, copperware, wooden and clay toys, handicrafts, gold jewellery, and musical instruments. Important agricultural products include betel leaves (for paan), langra mangoes and khoa (solidified milk).

Tourism is Varanasi's most second most important industry. Over 3 million domestic and 200,000 foreign tourists visit annually (as of 2005 and 2010, respectively), most commonly for religious reasons. Most domestic tourists are from Bihar, West Bengal, Madhya Pradesh, and Uttar Pradesh; most foreign tourists are from Sri Lanka and Japan. The peak tourist season falls between October and March. In total, there are around 12,000 beds available in the city, of which about one half are in inexpensive budget hotels and one third of which are in dharamsalas. Overall, Varanasi's tourist infrastructure is not well developed.

The prominent malls and multiplexes in Varanasi are IP Mall in Sigra, IP Vijaya Mall in Bhelupur, PDR in Luxa and JHV Mall in the Varanasi Cantonment area. The city has several banks, including the State Bank of India, Indian Overseas Bank, Bank of Baroda, Canara Bank, Andhra Bank, Allahabad Bank, and the Central Bank of India.