Sagar, city in central India, in north central Madhya Pradesh state, located in the Malwa region of the Deccan Plateau. The city lies around a lake framed by small hills. Bathing ghats (steps) lead into the lake and Hindu temples stand on its shores. Sagar is an agricultural market center for the surrounding region. Oil, flour, and saw mills operate in the city, and household industries produce handloomed cotton textiles and bidi (cigarettes). Sagar is the site of Dr. Harisingh Gour University. The city was founded in the 17th century. A fort built by Marathas in 1780 occupies 2.5 hectares (6 acres) northwest of the lake. In the early 1800s the British occupied the area and used the fort as a prison for roadside bandits, who were active in the region during that time. The British made Sagar a local government headquarters and established a large cantonment (military installation) here in 1818. Population (1991) 195,346.