Palanpuri is a city and a municipality of Banaskantha district in the Indian state of Gujarat. Palanpuri is the largest city and the administrative headquarters of the district.
Palanpuri was first settled by a Rajput name Prahladan, belonging to the Paramara dynasty of Rajputs, who received the surrounding area as appanage from his elder brother, who ruled the region of Arbud Parvat, what is known as Mount Abu now. Palanpuri was known as Prahladanpur because of the name of founder king Prahladan. In the history of Jainism also it is known as prahaladanpur. Palanpuri town later became the seat of the Palanpuri State.
Palanpuri was known as "flower city" because of perfumes (Itar) available here. Palanpuri is also known for its textile retail market. The major areas in the city are Station road, Delhi gate, Simla gate and Dhalwas. Kirti Stambh is a 22 m high historic tower located in Palanpuri. Palanpuri is also known for diamonds. People of Jain community of Palanpuri are famous Diamond merchants. They have Diamond business in Palanpuri, Surat, Mumbai Bangalore, Kolkata, Chennai and out of India in Belgium, London, Singapore and New York. Bombay Zaveri Bazaar is very famous for diamond business. In Belgium also they have big business of diamond. Because of that Palanpuri is known as ' City of Diamond '. The samosa is a famous item to eat in Palanpuri. Banas Dairy, one of the largest dairy in Gujarat is also situated in Palanpuri having 35 lacs liters per day in procurement of milk.
Dairy Industry,Diamond Polishing & Marble Industry is major key player of Economy in Palanpuri.
In 1370, Malek Khurram Khan captured Palanpuri and later they are termed as Nawabs of Jhalore. Hundreds of people moved with the nawabs: nobles, officials, craftsmen, farmers, traders, and administrators. The Jhalore Nawabs established themselves quickly, and ruled Palanpuri for the next 578 years, stepping down after becoming one of the first princely states to voluntarily merge with the Indian Union in 1948.[6] The benevolent rule of the nawabs is remembered with fondness even today. The liberal atmosphere was ideal for a flowering of craft and poetry. Palanpuri attars were famous for their delicate fragrance, and the state became well known for Gujarati ghazals, and poetry. Local historians credit much of Palanpuri’s good fortunes to an astute group of Jain administrators who oversaw the day-to-day running of the state. When the Jhalore Nawabs moved to Palanpuri they were accompanied by a group of Jain families. Originally Jain families from Rajasthan, the Jains found patronage under the Nawabs and their relationship evolved into one of mutual interest, and respect. In Palanpuri, the Jains became key advisors to the Nawabs. Palanpuri is closely associated with Jainism. Because of its remote location, the families started their businesses in Bombay (now Mumbai) and later Surat. However, they still maintain close ties to their ancestral home. India's diamond industry, still dominated by Palanpuri Jains, now processes the majority of diamonds used in jewellery.