Karwar town is known for its fine muslin. In the 17th century, Portuguese had considered Karwar as a safe harbor for their trading. In 1638, their rival English trading body Courteen Association came to Karwar and a muslin factory was opened by Sir. William Counten. Later Courteen Association united with East India company and the town became a Company Factory. Karwar was also famous for its coarse blue cotton cloth, pepper, cassier and cardamom. The Muslin factory, a part of Karwar history is now a tourist spot visited by many people.