At the 2001 India census, Kandwa had a population of 7,762. Males constituted 53% of the population and females 47%. Kandwa had an average literacy rate of 64%, higher than the national average of 59.5%: male literacy was 74%, and female literacy was 52%. In Kandwa, 17% of the population was under 6 years of age.
Karmdeshwer Temple is situated in Kandwa. The people of Kandwa believe that Shiv Jee's first steps in Varanasi were in Kandwa.