Best Profitable Small-Scale Industries in India - List, FAQs (2023)


Small-scale industries are amongst the most important industries in India as most of the industries are of a small-scale nature and hence a huge chunk of India’s income is derived from small-scale industries. Further, small-scale industries are practicable and significant in the sense that most people cannot invest huge amounts of money if they are willing to start a business.

Even though banks and other financial/non-financial institutions may lend a loan, it will not be disproportionate to the existing assets/money which the individual owns. Further, it is not practicable for a person having no business experience to start off on a large scale even if he/she has the ability to invest as it would not be easy to manage and their whole investment will be at risk.

Therefore it is always advised that people start off with small-scale industries and expand as and when their businesses grow. There are a variety of best small-scale industries for those interested in starting their businesses.

Cake Baking Business:

Cake baking businesses at home are becoming extremely popular owing to the fact that there is no hardly any risk in such business and it is also profitable. In cake baking businesses, orders are received by the baker to make cakes and the baker can then buy the items required for making the cake and charge the client accordingly.

Currently for almost every occasion cakes are sought and pre-ordered, such occasions include birthdays, anniversaries, Christmas, new-year and other office celebrations.

Read More – Bakery Business Plan

Candle Making Manufacturing Business:

Candles, especially scented candles are becoming increasingly popular and this is a simple industry that is small-scale and can be started from home itself. People have started using candles as pieces of interior decorations for their houses and it is also used for some religious purposes.

The candle-making business can be started at home with a low investment of only Rs. 20,000 to Rs. 30,000. Some of the most important materials that are required for such a business includes wax, thread, molds, candle-holders, thread, aroma and oil.


In India, especially in southern part of the country, almost every meal includes pickle. Pickles are extremely popular in Indian household and they are a traditional food item that is in demand. In the past, people used to make pickles at home and store it, however in the current corporate world where almost everyone is working, it becomes almost impossible to have the time to make pickles.

This is the reason ready-made pickles from shops are becoming famous, and if a pickle business is started at home it is welcomed by customers. Home-made pickles are more healthy and reliable. An average investment of Rs. 20,000 to Rs. 25,000 maybe sought for starting a small-scaled pickle business at home.

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Incense Sticks or Agarbattis and Camphors:

Incense sticks and camphor are a traditional and religious need for most of the households in India. They are bought regularly and if the quality of the products are good, then customers would buy from the business every time they are in need of camphors or agarbattis. The investment required to start such a business starts from Rs.50,000 for procuring materials including machines to make agarbattis and camphors.

The investment can go higher up depending upon the number of products that the business intends to manufacture.

Handmade Chocolates:

Chocolates are amongst the most favorite consumables for children and for adults. It is commonly consumed and most often bought in bulk for celebrations. Homemade chocolates are one of the best businesses as people love to get different flavored chocolates that are made at home.

An investment of about Rs. 40,000 to Rs. 50,000 would be required for procuring raw materials and for packaging. The advantage of this business is that it can be done at home and can be stored for long.

Papad and Other Roasted/Fried Snacks:

Papad and other roasted/fried snacks such as chips and fryums have high demand in the country. This demand is due to the fact that rice is a major part of the meal we consume and such fried snacks taste well with any form of rice. Ingredients including wheat, oil, flour and spices are generally required for starting such a business.

The investment for such business ranges from Rs. 30,000 to Rs. 40,000. This business can be done at home, making it advantageous to entrepreneurs.

Jute Bags:

Jute bags are biodegradable and reusable making them highly beneficial for people on a daily basis. Especially in the present situation where plastic bags are discouraged and people are seeking to use environment-friendly products, jute bags are in demand. Apart from their necessity for shopping and storing products, they are also priced according to their designs – the more fashionable the bags, the more price people are ready to pay for the product. Making jute bags and selling them can hence be a profitable business.

A capital investment of approximately Rs. 50,000 to 1 lakh could be required to start the business.

Organic Soaps:

Organic soaps are highly in demand today because of their uniqueness and because they have good skin benefits. These soaps are acquiring a new place in the market due to their demand and it is one of the best small businesses to start. Raw materials such as oil, microwave oven, moulds, herbs, etc. to make organic business.

An investment of about Rs. 1.5 lakh to Rs. 2 lakh would be required for a production that is scaled.

Nursery/Garden Products:

Nursery and Garden products are almost always in demand, and in recent times, plants have also become pieces of décor apart from being kept in the balcony. There are several indoor plants that people demand and there are even small areas on the terrace/outside the house which people desire to turn into a small garden. This is the reason nursery and plant businesses can be amongst the best small businesses. A person would require things like pots, mud, etc. to start such a business.

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Handicraft Sellers:

Handicraft is an art that is cherished and loved by many. Most people love to own and display hand-made products as they exhibit a sense of originality and craftsmanship making the products they make unique. Not much investment is required for handicraft business, and many handicraft products such as photo framers, pots, wall-hangings, etc. can be made with low investment.

Also, people who are truly interested in handicrafts are willing to buy such products at a price much higher than those that are machine-made. Many business opportunities are available in the present day due to the number of products and the amount of population in the country.

Starting a business, even a small one, is not only nice in the sense that an entrepreneur gets to control his/her work, but it is also an opportunity to explore and venture into selling those products or services that one has a passion for. Several online businesses have been established during the pandemic and it has become a good way to be engaged and make money by sitting at home as most of the small businesses can be started from home.

Best Profitable Small-Scale Industries in India FAQs:

1.What are the most successful small businesses in India?

Small businesses such as pickle business, gardening business, cake-baking businesses, and so many more are successful in India. It is important to know that a single business cannot be said to be successful everywhere at every point in time. Every small business should be chosen according to the investment ability of the person, the demand from people and the locality of the business.

2.How do I procure money to start business if I am turned down by banks and financial institutions?

The government has introduced various reforms and schemes to provide for an opportunity to small-scale businesses by lending them loans. So if a person is looking forward to starting an MSME i.e. a Micro, Small, Medium Enterprise, then he/she can register under any of the schemes of the government that fit his/her requirements and if the concerned person falls under any of the categories mentioned in the scheme.

3.Can an online small business be started with low investment?

Yes, an online business is not very expensive to start. In fact, it cuts much more costs than starting a business physically in a place as rent, electricity and other charges will have to be borne by the person. It is one of the best ideas to start a website and an application, along with doing some free online marketing through social media, in order to start a small business.

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4.Do I have to know in depth about the business I want to start or can I hire an expert and pay him/her to work for me?

Knowing at least a little about the business a person is about to start is better. In fact, the more the person knows about his/her business, the better it is. Definitely, an expert can be hired, but as a small business, it can even be started without much help from an expert in the field if the entrepreneur understands and knows the nature of the business in order to avoid creating a sense of dependence on another.

5.Is GST registration compulsory for a small business?

GST registration is not compulsory unless the income of the person exceeds Rs. 5 lakhs in certain states and Rs. 10 lakh in certain other states. However, GST registration is better for the business as there are many benefits to it like being recognized in order to have higher chances of availing financial help for the business, maintaining line of credit and several other.

6.What is the minimum investment required to start a small business?

The minimum investment required to start a business depends on the business itself. The investment can start from Rs. 10,000 for businesses like handicraft, cake-baking, pickle business, etc. However, for other businesses it would depend on the raw materials required and also on any special tools/machines that may be necessary.

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7.Can I start a small business without have much educational qualification?

Yes, a small business can be started without much educational qualification. However, some basic education such as knowing to calculate cost and to understand about how to run a business. However, for any business, practical understanding is more required than any educational qualification.

8.Can a house-wife start a small business at home?

Yes, a house-wife can start a small business at home without much investment from home itself. It depends on the quality and passion of the woman to choose the products that she can make and sell. It can be products that are related to cooking, artwork or any other such product.

9.Would I have to hire someone to start a small business?

It is not compulsory or necessary to hire someone in order to start a small business. However, it depends on the kind of business. Some businesses do not require assistance from any other person and it can be handled single-handedly. However, whether it is required to hire any person to help in the business depends on the nature of the business and the quantity of products intended to be manufactured/sold.

10.What are the documents required to register a small business?

The most commonly required documents include Aadhar card or any other identity proof, address proof, passport sized photographs, rental agreement/latest property tax receipt, electricity bill of the place and PAN Card for starting a sole-proprietorship. However, few more documents may be required in case of starting a company or a partnership.

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What type of small business makes the most money? ›

Check out this list of the most profitable small businesses.
  1. Business Consulting. If you're an expert in your industry and have been working at it for years, you should consider consulting. ...
  2. IT Support, Technology Consulting, and Repair. ...
  3. Cleaning Services. ...
  4. Accounting and Tax Preparation. ...
  5. Auto Repair. ...
  6. Real Estate.

How can we solve the problem of small scale industries? ›

Demarcating spheres for large-scale and small-scale units.
  1. (1) Equitable Allocation of Raw Materials, Imported Components and Equipment: ...
  2. (2) Improvement in the Methods and Techniques of Production: ...
  3. (3) Provision of Adequate Finance: ...
  4. (4) Marketing Assistance: ...
  5. (5) Industrial Education and Training:

Which type of business is more profitable? ›

With a net profit margin of 18.4%, accounting and bookkeeping services is one of the most profitable industries you can go into in 2022.

Which business has highest margin? ›

Most people say the healthcare, finance, or technology industries are highly profitable.
A few high profit margin small businesses include the following:
  • Setting up an online bakery.
  • Selling home improvement or home decor equipment.
  • Organic farming.
  • Interior designing services.
11 Dec 2021

What are the 10 business ideas? ›

Best Small Business Ideas
  • Handyman. Image Source. ...
  • Woodworker. ...
  • Online Dating Consultant. ...
  • Sewing and Alteration Specialist. ...
  • Freelance Developer. ...
  • Personal Trainer. ...
  • Freelance Graphic Designer. ...
  • Life/ Career Coach.
6 days ago

How can I start a successful business? ›

  1. Conduct market research. Market research will tell you if there's an opportunity to turn your idea into a successful business. ...
  2. Write your business plan. ...
  3. Fund your business. ...
  4. Pick your business location. ...
  5. Choose a business structure. ...
  6. Choose your business name. ...
  7. Register your business. ...
  8. Get federal and state tax IDs.

What are the government policies for small scale industries? ›

Government Policies for Development and Promotion of Small-Scale Industries in India
  • Industrial Policy Resolution (IPR) 1948.
  • Industrial Policy Resolution (IPR) 1956.
  • Industrial Policy Resolution (IPR) 1977.
  • Industrial Policy Resolution (IPR) 1980.
  • Industrial Policy Resolution (IPR) 1990.

Why do we need small scale industries? ›

Small scale industries are important because it helps in increasing employment and economic development of India. It improves the growth of the country by increasing urban and rural growth.

How does government promote small scale industries? ›

Small industries receive various benefits from the government of India such as Land, Power, Water, Sales Tax, Octroi, Raw materials, Finance, Industrial estates and Tax holiday. Even though enough importance is given to backward areas and small industries, there is still an imbalance in their economic growth.

What is the safest business to start? ›

Businesses With Low-risk and High-reward Potential to Consider
  • Affiliate Marketing. ...
  • Freelance Writing. ...
  • Consulting. ...
  • Career Coaching. ...
  • Dropshipping. ...
  • Social Media Marketing. ...
  • Organization-Based Businesses.

Which business is best in future? ›

20+ Future Business in India for 2025
  • 1) Outsourcing business. ...
  • 2) Internet of things (IoT) industry. ...
  • 3) Rise of co-working space. ...
  • 4) 3D printing. ...
  • 5) Consumer goods and services business. ...
  • 6) Business in real estate. ...
  • 7) Healthcare industry. ...
  • 8) Consultancy business.
1 Oct 2022

Which business is best for ladies? ›

The 50 best business ideas for women
  • Graphic design.
  • Editing and proofreading.
  • Marketing copywriting.
  • Content creation.
  • Public relations consulting.
  • Brand ambassador.
  • Photography.
  • SEO consulting and strategy.
26 Jul 2022

What is a good profit margin? ›

What is a Good Profit Margin? You may be asking yourself, “what is a good profit margin?” A good margin will vary considerably by industry, but as a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is considered high (or “good”), and a 5% margin is low.

What is profitable product? ›

A product is fully profitable if the revenue generated by the product is greater than the cost incurred to produce and sell the product. We can look at these two definitions from another angle by reference to the difference between marginal cost and average cost.

Which products are most profitable? ›

On this page
  • Attributes of High-Margin Products.
  • Inspiration for High-Margin Products.
  • #1 Jewelry.
  • #2 Beauty Products.
  • #3 Bamboo Toothbrushes.
  • #4 Sunglasses.
  • #5 Watches.
  • #6 Women's Apparel.
6 Oct 2022

How do you manage a small business? ›

Here are the ten things you should know about small business management:
  1. Create a Business Plan. ...
  2. Separate Your Personal and Business Finances. ...
  3. Determine Funding Requirements. ...
  4. Hire the Right People. ...
  5. Train Your Employees. ...
  6. Keep Track of Your Finances. ...
  7. Invest in Marketing. ...
  8. Learn to Delegate.
28 Mar 2019

What are good business names? ›

Sample business name ideas to inspire you
  • Spa Paragon.
  • GameDay Catering.
  • Exploration Kids.
  • Yoga Professor.
  • Darwin Travel.
  • Party Plex.
  • Pizza Factor.
  • Acorn Crafts.

What makes a good business idea? ›

New product, service or invention. Innovative solution to an every day problem. An interest or hobby that can be monetised. Utilised skills you've learned in your career.

What is the cheapest most profitable business to start? ›

The Best Low-Cost Business Ideas with High Profit Margins
  • Blogging. Starting your own blog is one of the best online business ideas around. ...
  • Affiliate Marketing. ...
  • Dropshipping. ...
  • Selling Online Courses. ...
  • Amazon FBA. ...
  • Become a Social Media Influencer. ...
  • Podcasting. ...
  • Airbnb.
14 Oct 2022

What are the unique business ideas? ›

8 unique business ideas to try in 2022
  • Become a personal shopper and promote your services on TikTok. ...
  • Launch your own novelty t-shirt brand. ...
  • Launch a podcast and build multiple income streams. ...
  • Offer virtual assistance to other businesses. ...
  • Start a gifts and flower delivery business.
16 May 2022

What are 3 ways to increase profit? ›

There are 3 main ways to improve the profitability of your company: Sell more, price higher and reduce costs. But profits can also be increased by greater cost efficiency.

How do you attract customers? ›

5 Tips for Attracting New Customers
  1. Identify Your Ideal New Customers. ...
  2. Use Direct Response Marketing to Attract Customers. ...
  3. Give Something Away to Entice New Customers. ...
  4. Give Your Business a Face Lift to Increase Sales. ...
  5. Get The (Right) Word Out.

How do you prevent loss? ›

#9: How To Avoid Losses
  1. Don't trade far away from the area of value. In certain market conditions, especially when the market is in a healthy trend, the market tends to pull back towards the mean. ...
  2. Don't chase breakouts. ...
  3. Don't trade into obstacles. ...
  4. The BOS technique. ...
  5. Don't put your stops at obvious levels.

What makes a small business successful? ›

Successful small businesses are customer-focused, which means they understand the needs of their current customer bases. Satisfied customers can drive profits through repeat business and referrals.

What makes a company successful? ›

Key Takeaways

If a company has above-average management—people who have experience and have been with the company for a long time—there's a good chance that the company will be a success. Companies can achieve market leadership through quality, innovation, customer service, or even warranties.

What is the key of success in business? ›

Consistency is key to success in business. If you are selling products or offering services, make sure that you consistently offer high-quality products and services. This way, your customers will trust you. Once you have established trust with your customers, they are less likely to move to your competitors.

What are the documents required for small scale industries? ›

What are the documents required for SSI registration?
  • Proof of business address.
  • Purchase bill copies of raw materials, machinery and so on.
  • Partnership deed/ AoA and MoA.
  • NOC from the pollution control committee.

What are the problems of small scale industries in India? ›

What are the problems faced by Small Scale Industries in India?
  • Poor capacity utilization.
  • Incompetent management.
  • Inadequate Finance.
  • Raw material shortages.
  • Lack of marketing support.
  • Problem of working capital.
  • Problems in Export.
  • Lack of technology up-gradation.

What is the investment limit of small scale industries? ›

At present, the maximum investment allowed in small scale industries is one crore rupees.

What are the problems faced by small scale industries? ›

Some of them are discussed below:
  • Shortage of Funds: ADVERTISEMENTS: ...
  • Lack of Latest Technology: Small business lacks funds. ...
  • Shortage of Raw Materials: There is shortage of raw material because of less working capital. ...
  • Shortage of Power: ...
  • Labour Problem: ...
  • Marketing Problem: ...
  • Managerial Skills: ...
  • Quality:

What are the main characteristics of small scale industry? ›

The features of small-scale industries are as follows :
  • Personal character: SSIs enjoy the personal character. ...
  • Simple managerial structure: It is managed by owners only. ...
  • Labour incentive techniques: There is a predominance of labour. ...
  • Local area of operations: The operations of a unit are localised.

What are the causes of sickness of small scale industries? ›

Some of the major causes for sickness in small scale industries are dealt in brief:
  • Inadequacy of working capital.
  • Non-availability of credit.
  • Poor and obsolete technology.
  • Non availability of raw material.
  • Marketing problems.

What are strategies taken for the growth of small scale industry? ›

Some of the top most strategies used for the growth of small-scale enterprise are: 1. Expansion 2. Diversification 3. Joint Venture 4.

What are the three characteristics of small scale industry? ›

Characteristics of Small Scale Industries
  • Ownership: Such units are generally under single ownership. ...
  • Management: Both the management and the control generally is with the owner/owners. ...
  • Limited Reach: Small scale industries have a restricted area of operations.

Which business has maximum profit in India? ›

At the top of the list is state-run Oil & Natural Gas Corporation (ONGC) with a net profit of Rs 40,306 crore. Mukesh Ambani's Reliance Industries (RIL) is in the second position with a net profit of Rs 39,084 crore.

Which small business is best in India? ›

Here are some of the interesting business ideas in India for setting up a small business:
  • Automobile repairs. ...
  • Tiffin service. ...
  • Electronics repair. ...
  • Blogging as a small business. ...
  • Private tutoring. ...
  • Pet-care service. ...
  • Educational mobile apps. ...
  • Bake the cake.

Which business earns the most money in India? ›

Here is the list of the top 16 profitable businesses in India that don't cost you an arm and a leg.
  • Interior Design and Decoration. This one is for the creative souls! ...
  • Pharmaceutical Businesses. ...
  • Organic Farming. ...
  • Labour Contractor. ...
  • Cloud Kitchen. ...
  • Fashion Accessories. ...
  • Photography. ...
  • Exclusive Plant Nurseries.

Which business has highest profit margin in India? ›

Check out some high-margin small businesses in India which you can start with a very small budget and which can turn profitable very quickly.
  • Food Catering. ...
  • Educational Centres or Tuition. ...
  • Bus Service Website. ...
  • Safety and Protective Equipment. ...
  • Property Management. ...
  • Travel and Tourism Services. ...
  • Fashion Boutique. ...
  • Café business.
8 Jan 2021

Which share gives best profit? ›

CompanyCMP (Rs)NPM (%)
ADANI PORTS & SEZ822.228.9%
HDFC BANK1,444.028.0%
ICICI BANK885.026.3%
21 more rows

Which business is best for investment? ›

Top 7 Low Investment Business Ideas With High Profit
  • Most Profitable Low Investment Business Ideas in India.
  • Dropshipping.
  • Courier Company.
  • Online Bakery.
  • Online Fashion Boutique.
  • Sell a Service.
  • Social Media Agency.
  • Handcrafted Products.
9 Sept 2020

Which business is growing fast in India? ›

RankCompany NameNet Profit growth(%)
1Sulzer India163.4
2Oil Country Tubular212.7
3Tata Sponge Iron159.8
4Zydus Wellness166.9
65 more rows

Which startup is best in India? ›

Top 20 Startups in India – 2022
  • Delhivery.
  • Slice.
  • InMobi.
  • Practo.
  • Boat.
  • Skyroot Aerospace.
  • LivSpace.
  • Ather.

Which business is best for ladies? ›

The 50 best business ideas for women
  • Graphic design.
  • Editing and proofreading.
  • Marketing copywriting.
  • Content creation.
  • Public relations consulting.
  • Brand ambassador.
  • Photography.
  • SEO consulting and strategy.
26 Jul 2022

What business will grow in the future? ›

20+ Future Business in India for 2025
  • 1) Outsourcing business. ...
  • 2) Internet of things (IoT) industry. ...
  • 3) Rise of co-working space. ...
  • 4) 3D printing. ...
  • 5) Consumer goods and services business. ...
  • 6) Business in real estate. ...
  • 7) Healthcare industry. ...
  • 8) Consultancy business.
1 Oct 2022

How can I earn fast money? ›

How to make money online
  1. Pick up freelance work online. ...
  2. Test websites and apps. ...
  3. Pick up tasks on Amazon's Mechanical Turk. ...
  4. Take surveys for money. ...
  5. 5. Make money from your blog as an affiliate. ...
  6. Sell your wares on Etsy. ...
  7. Get advertising revenue from your blog or YouTube channel. ...
  8. Become an Instagram influencer.
8 Aug 2022

Which products are most profitable? ›

On this page
  • Attributes of High-Margin Products.
  • Inspiration for High-Margin Products.
  • #1 Jewelry.
  • #2 Beauty Products.
  • #3 Bamboo Toothbrushes.
  • #4 Sunglasses.
  • #5 Watches.
  • #6 Women's Apparel.
6 Oct 2022

Which business is best for future in India? ›

However, among all these businesses, some of the best future businesses in India are as follows.
  • Digital Marketing Agency.
  • Investment Business.
  • Courier Service.
  • Outsourcing Business.
  • Internet of Things (IoT) Business.
  • Biometric Sensor Locks.
  • Broadband Business.
  • Freelancing Services.

Which business is more profitable for ladies? ›

Freelance writing is the most lucrative small business ideas for women in India as there is zero investment cost and does not bound you to work in fixed office hours. You can start working right from the comfort of your home.


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