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Amritsar is also known as Sri Guru Da Chakk. This place is not only famous for its various attractions but the many unforgetable freedom fighters who were born here and around, including the legendary Bhagat Singh.
One tourist attraction you can find here is Harmandar Sahib, or as it is known as the Golden Temple.
You will also find Jallianwala Bagh, where massive destruction by the British and General Dyer occurred, on the Holy Day of Baisakhi.
Another must do is Wagah Border, land border crossing between INDIA and Pakistan, a major human/cargo border crossing the only one with this much fan-fare attached to the evening ceremony of closing the border gates "Beating Retreat".
Talking about the modern times, you will find that Amritsar has developed very fast, little haphazard. Now you can find here Alpha One and Celebration Mall (both home to two multiplex chains Fun Cinemas and Cinepolis- yes the Mexican Chain respectively), hosting several high street brands like Tommy Hilfiger, Marks & Spencer etc, Dollar Store, Pizza Hut, Dominoes Pizza, Ebony ,Ritu Wears, No-Exit, Levis, UCB, Vishal Mega Mart. The Reliance Food Mart and stuff like that. For more traditional stuff there is Khadi Emporium and Govt of Punjab's Phulkari, at Phulkari you can find traditional punjabi crafts like Phulkari-Embroidered stich work in bright colors predominated by straight stitches, Punjabi tilla Jutti- Traditional leather footwear with thread work, Parandas - Colorful threads used for braiding hair in a plait by women etc.
Try some traditional footwear called the Punjabi Jutti, available in abundance around the Golden Temple and all over the city, the local made ones( made around the area of Chehatta, semi-rural area along the wat to Wagah Border) as well as other varieties from all over the state of Punjab
Talking about the places to stay, the better rated places to stay are a little farther away from The Golden Temple. There is MK international, The Ritz Plaza, The Mohan International, Ranjit Svaasa heritage hotel, new additions to the list are HYATT (ISTA is now HYATT) with its speciality restaurants and daily bus service to Golden Temple (for guests only) and Country Inn and Suites by Carlson. There is The Radisson opposite the airport , as well as the Holiday Inn (it's being fittied out, but undetermined opening date) . Visit TripAdvisor's Amritsar Hotel pages for more suggestions. Also try www.hotelsinamritsar.com
As for places to eat, sample the local fare at Bharawan Da Dhaba (close to the Golden Temple), Kesar Da Dhaba, for more of a formal affair (loosely) go to Crystal Restaurant (there are two ground floor has been around for a while long while the upper floor is a new start up), Astoria Food Pavilion, Moti Mahal, Spice Room etc. For some Tandoori fare there is Bukhara Ranjit Avenue, a little out of the typical tourist path but decent. Also try Eldo Rado.This restaurant is famous because it has everything, but it's not too expensive - the food is tremendous all over the City!
Ranjit avenue especially the market around MK hotel and its adjoining C-Block market have transformed into a Foodie central with all sorts of fares being whipped up - Italian, Indian, Thai, some Middle Eastern etc. For the home sick kinds yes there is a McDonalds and a KFC to pick your spirits up. Mcdonalds is inside the Celebration Mall, KFC is on Mall Road. For the coffee junkies, two indian chains Barista and Cafe Coffee Day fighting for your attention, with the former opening a 24 hours cafe close to the Golden Temple in Hotel City Heart. There is another local chain Bakes and Beans in Ranjit Ave B- Block market - famous for the lunching ladies.
A boon for a city without much of public transport, Amritsar now has two point to point radio taxi services Mega Cabs, call at 0183-5151515 and City Cabs, call at 0183-6060606, they not essentially the cheapest way but definately the most comfortable way to go about the city. It is a 24 hours service, allow 20-25 minutes for your cab to arrive though. Please note they cannot be hailed on the street you have to call them, it is for sure that they dont have any booking fees. For some while they had a airport counter as well which at the moment is in the flux with being shut dowm temporarily.
Enjoy Amritsar visited by more people than even Agra.