Guntur is the administrative headquarters of Guntur district. The town was founded in the mid-18th century by the French, but in 1788 it was ceded permanently to the British. It became a municipality in 1866. A railroad junction and trade centre, Guntur's economy is dominated by the growing of jute, tobacco, and rice.

Guntur is the headquarters of Guntur district. Various explanations are given for the name, Guntur. Some believe that the original village derived its name from a pond (Kunta) and that it lay in a Kunta of land after which it came to be called "Kunta Vuru" or Guntur. Yet another version associates the name of the place with the practice of the local kings or chiefs firing a gunt to mark the midday after which it came to be known as "Gunduru" or "Gunturu".

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