Kolhapur is a very ancient city, famous for its food, headwear, footwear, jewellery, wrestling and religious connections. According to legend it was settled by Kolhasur, a demon who was later killed by Mahalakshmi to relieve the local populace. However, honouring the demon's dying wish, the city was named after him. Majority of the city dwellers are Marathas along with relatively smaller communities of Gujaratis, Marwadis, Maharashtrian Jains, Lingayats and Sindhis.

Kolhapur has one of the highest per-capita income for a city in India. Trade is mostly dependant on farming of cash crops like sugarcane, the metal industry with important inputs from textiles and mining. The prosperity and the resulting spending prowess of the Kolhapuri people was famously reported in a list of cities with the highest number of Mercedes cars in the state of Maharashtra, where Kolhapur came second only to Mumbai[1]. Similarly, Kolhapur also attracts lots of shoppers from around the region. The main shopping hub of the city is Mahadwar Road, near Mahalaxmi Temple inside the old city walls. New and modern stores have also popped up in the historically residential area, Rajarampuri.

Another field that Kolhapur prides itself of, is films. In certain circles, Kolhapur was and is still considered the capital of Marathi film industry. Legendary personalities like Bhalaji Pendharkar, Baburao Painter and V. Shantaram started their careers from Kolhapur. It has been credited as the place where Raja Harishchandra, the first feature film ever produced in Indian was conceptualised. Kolhapur still plays host to many film festivals and provides location for shooting. Kolhapur is also a strong political center. Nationalist Congress Party along with Congress are the current political powerhouses in the region.