Gadhinglaj is situated on the banks of the Hiranyakeshi river, which originates in the Amboli Ghats mountains.

It is the largest city in South Kolhapur and has enough area and population to be deemed a district.

During the 1970s, Appasaheb Nalawade founded the Gadhinglaj Sugar Factory, which contributed to the city's industrial and agricultural growth.

During this time Gadhinglaj also saw a boom in its trade, business, financial, and real estate sectors.

It was founded on 1 August 1887, and oversees construction, health, sanitation, water supply, administration, and taxation in the city.

It maintains paved roads and civil facilities through tax revenues collected from various economic sectors.

Real estate is another prosperous sector in Gadhinglaj due to the city's booming trading and industrial sectors, ideal location and climate, developed infrastructure, and abundant electricity and water supply.

These qualities have led to heavy investment in the city's real estate by outsiders, mainly from Kolhapur, Satara, Pune, Mumbai, and Nagpur.

Gadhinglaj's agricultural sector is known for sugarcane, red chili, jaggery, food grains, and vegetables.

Some parts of Sindhudurg district and Goa state heavily rely on Gadhinglaj for food grains and vegetables.

This industrial area is well connected by road, rail, and air transport to almost all Indian cities.

[5] The Grinex company pledged an investment of Rs 320 crores (US$60 million) in a production plant for the manufacturing of fibre pipes for the water supply.

In 2010, it was rumoured that the nagar palika of Gadhinglaj City was in process of expanding municipal limits by 10 kilometres (6.2 mi) towards Mahagaon.

This would improve Gadhinglaj's status as an economic hub in Kolhapur and South Maharashtra.

The surrounding area of Badyachiwadi gram panchayat is now included in the limits of Gadhinglaj city.

These include a football stadium, numerous cricket grounds, and two sports complexes (one managed by the Municipal Council and the other by the Gadhinagar Housing Society Corporation).

Both sports complexes include facilities for football, cricket, badminton, tennis, basketball, track, and swimming.

Ajit Krida Mandal started the tradition of the Interstate football tournament in Gadhinglaj on Diwali vacation.

Gadhinglaj is connected to the rest of Maharashtra and India by the state highway system.