Impeller exit area is an important design parameter that influences pump performance characteristics. In this study, to achieve steeper H-Q characteristics and a safer power curve, a new impeller has been designed with reduced area ratio. The numerical analysis, using commercial ANSYS CFX software, has been performed with the old and the new modified impeller on the same casing by keeping the volute geometry, throat area and suction development unaltered. In order to reduce the area ratio, we have reduced the impeller exit area by decreasing impeller width and blade outlet angle. To validate the simulation result, an experiment has been conducted in the pump test laboratory with the two impellers. We have observed that the H-Q characteristic becomes steeper with the decrease in the area ratio. The peak efficiency remains unchanged, however, the BEP shifts toward the lower flow rate. The P-Q curve becomes non-overloading and flat. We have also introduced a steepness factor Ku which can be used in future research work.