As of 2001[update] India census, Khamaria had a population of 27,581. Males constitute 48% of the population and females 52%. Khamaria has an average literacy rate of 36%, well below the national average of 59.5%: male literacy is 66%, and female literacy is 45%. In Khamaria, 13% of the population is under 6 years of age and 17% of the population is above 67 years of age. The town has a major hospital (Khamaria Hospital). It has many carpet manufacturing export houses such as E.Hill & Company, Anjani Carpets, Prasad Carpets among the oldest carpet manufacturing companies in Bhadohi. Khamaria is also best known for ornaments business as well with well known firm as Banarasi ornament House, TSK, etc. Chairman (municipal corporation) of the town is Usha Maurya who came to power in 2012 after the state government made the chairman's seat as only for women citing women empowerment. Mrs Adarsh Purnima Baranwal Stood 2nd in the municipal corporation elections.