The embodiments herein provide a hydrostatic backward extrusion system that utilizes hydrostatic pressure to produce products with desired cross sectional profile based on backward extrusion process. The system comprises a container, a plunger, fixed-punch, and a billet chamber. The billet material is placed inside the billet chamber. The empty space between the billet chamber and the billet material is filled with a high pressure fluid. Sealing is done at appropriate places to prevent leakage of fluid during the extrusion process. The plunger is moved down to create pressure on the fluid. Due to hydrostatic pressure, the billet material flows into the annular space between the container and the fix-punch. The design of head profile, inner and outer radius of fix-punch allows the billet material to flow smoothly into the annular and forms an extruded product.