 Varanasi grew as an important industrial centre , famous for its muslin and silk <unk> , perfumes , ivory works , and sculpture . Buddha is believed to have founded Buddhism here around <unk> BC when he gave his first sermon , " The Setting in Motion of the Wheel of Dharma " , at nearby <unk> . The city 's religious importance continued to grow in the 8th century , when Adi <unk> established the worship of Shiva as an official sect of Varanasi . Despite the Muslim rule , Varanasi remained the centre of activity for Hindu intellectuals and theologians during the Middle Ages , which further contributed to its reputation as a cultural centre of religion and education . <unk> Tulsidas wrote his epic poem on Lord Rama 's life called Ram <unk> Manas in Varanasi . Several other major figures of the Bhakti movement were born in Varanasi , including Kabir and Ravidas . Guru Nanak Dev visited Varanasi for <unk> in <unk> , a trip that played a large role in the founding of <unk> . In the 16th century , Varanasi experienced a cultural revival under the Muslim Mughal emperor <unk> who invested in the city , and built two large temples dedicated to Shiva and Vishnu , though much of modern Varanasi was built during the 18th century , by the Maratha and <unk> kings . The kingdom of Benares was given official status by the <unk> in 1737 , and continued as a dynasty @-@ governed area until Indian independence in 1947 . The city is governed by the Varanasi Nagar Nigam ( Municipal Corporation ) and is represented in the Parliament of India by the current Prime Minister of India <unk> <unk> , who won the <unk> <unk> elections in 2014 by a huge margin . Silk weaving , carpets and crafts and tourism employ a significant number of the local population , as do the <unk> <unk> Works and Bharat Heavy <unk> Limited . Varanasi Hospital was established in 1964 . 
