I need to create an web application using python and deploy it on a local server so that any system connected locally to that server can use that app.
This combination should have minimum security risks and allow easy portability & scaling.
There is a nice walk through of using Docker Compose to run a simple Django/PostgreSQL app here.
You may find it worth looking at Gunicorn - have a look at Dockerizing Django with Postgres, Gunicorn, and Nginx.
There are a number of Python web frameworks available but Django is one of the more popular so lots of support and advice is available.