In the current wave of globalization many dynamic economic functions, co-operation, and modern theories are practiced for the economic development and human-physical well-being of societies around the world. India's economy has a different workforce in term of size and dimensions compared to the global workforce. There is both formal and informal sector which contributes to the employment, growth of technologies and sustainable urban development of Indian economy from ancient time to present. At the Ghats of river Ganga in Varanasi; Ghats' economy is based on the informal activities. This has developed the employment, growth of infrastructure, and sustainable urban development and rural–urban livelihoods security for the local people. This is mostly based upon the traditional knowledge/Indigenous knowledge/Lokvidya of local people at Ghats in Varanasi. As we know the Varanasi is the one of the oldest living cities in the world and their Ghats are also built in ancient time, for the purpose of bathing, worship of Aryan's/Hindu's gods (Ganga, Surya Dev, Agni Dev, and Lord Shiva), small trade, and transportation; so the economic functions of Ghat are long established too. To know the economic activity on Ghats of Varanasi, this paper evaluates the economic functions of Ghats (Dashashvamedha and Manikarnika), tourism and analyzing the source of livelihood of local people for sustainable development.