Top 15 Small Business Ideas with Low Investment in India

Small businesses play an important role in shaping India's economy, serving as a major source of employment and economic growth. They account for a significant portion of the country's GDP and contribute to exports, innovation, and industrial development. Unlike large-scale businesses, small businesses require relatively low investment, making them an attractive option for aspiring entrepreneurs. With the rise of digital technology, e-commerce, and sustainable consumer preferences, the potential for small business success has expanded considerably.   

One of the biggest advantages of starting a small business is its accessibility. Entrepreneurs can launch their ventures with minimal capital while leveraging government support programs like Mudra Loans, MSME subsidies, and Startup India initiatives. These programs provide essential financial aid, tax benefits, and technical assistance, ensuring that small businesses thrive in a competitive market. Additionally, digital tools and social media platforms have made it easier than ever for small businesses to reach customers, promote their products, and scale operations.  

 

Starting a small business offers several key benefits:  

• Low Initial Investment – Most small business ideas require minimal capital, making them accessible to individuals with limited financial resources. Entrepreneurs can begin with as little as ₹10,000 to ₹50,000 for home-based businesses and up to a few lakhs for manufacturing or service-based ventures. 
   
• High Flexibility – Many small businesses can be operated from home or with small setups, reducing the need for expensive office spaces or infrastructure. This flexibility allows entrepreneurs to maintain a work-life balance while running their businesses effectively. 
   
• Quick Returns – Unlike large-scale businesses that require years to turn profitable, many small businesses start generating revenue within months. With the right market strategy and efficient operations, entrepreneurs can achieve sustainability and growth quickly. 
   
• Government Support – The Indian government actively promotes small businesses through various schemes and financial assistance programs. Initiatives like Mudra Loans, Stand-Up India, and MSME incentives provide funding, skill development, and market exposure opportunities for small entrepreneurs. 
   
• Scalability & Expansion – Small businesses can gradually scale operations by reinvesting profits into business expansion, hiring employees, or diversifying product offerings. Many successful brands today started as small businesses and expanded over time. 
    

With India’s increasing focus on local production, sustainable alternatives, and innovation-driven business models, small businesses have a promising future. Whether it’s manufacturing, retail, services, or digital entrepreneurship, there are numerous opportunities to explore.

 

If you are planning to start a business in India with low investment, here are 15 profitable small business ideas that you can consider. These ideas require limited capital, have high demand, and offer strong growth potential, making them ideal choices for aspiring entrepreneurs.

    

1. Biodegradable Bag Manufacturing   

With increasing environmental awareness and government restrictions on plastic usage, the demand for biodegradable bags has surged. These bags are made from materials like cornstarch, jute, and paper, making them an eco-friendly alternative.  

Business Potential & Market Scope:  

- High demand due to strict environmental laws.  

- Recyclable and compostable, making it a sustainable venture.  

- Can start with an investment of ₹50,000 – ₹2,00,000, depending on scale. 

  

Starting a biodegradable bag business requires raw material procurement, a simple manufacturing setup, and marketing efforts to target eco-conscious consumers and retailers.  

  

2. Incense Stick (Agarbatti) Manufacturing   

Agarbatti (incense sticks) are an integral part of Indian culture, used for religious rituals, meditation, and aromatherapy. The production process is simple and requires minimal machinery.  

  

Business Potential & Market Scope:  

- High domestic and export demand.  

- Requires ₹50,000 – ₹1,50,000 to start.  

- Can be started from home or a small unit.  

  

You will need bamboo sticks, charcoal powder, essential oils, and packaging materials. Selling to local vendors, temples, and online platforms can help scale the business.  

  

3. Non-Woven Bag Manufacturing  

Non-woven bags are durable, reusable, and widely used in retail stores and shopping malls as an alternative to plastic bags.  

Business Potential & Market Scope:  

- Increasing demand due to environmental concerns.   

- Government support for eco-friendly initiatives.  

- Initial investment of ₹2,00,000 – ₹5,00,000 for machinery and materials.  

Setting up a small-scale unit with a non-woven bag-making machine can help produce bags in different sizes and designs for various industries.  

  

4. Bag Manufacturing Unit  

Starting a bag manufacturing unit can be a profitable venture, whether for school bags, office bags, or travel bags. With changing fashion trends and increased mobility, the demand for high-quality, durable bags is rising.   

Business Potential & Market Scope:  

- Diverse market opportunities (corporate, retail, travel).  

- Investment starts from ₹1,50,000 – ₹3,00,000.  

- Can be expanded with branding and customization.  

  

Invest in sewing machines, skilled labor, and quality fabric to create unique and stylish bags for different consumer needs.  

  

5. Cotton Wicks Making Business   

Cotton wicks (used for oil lamps and religious purposes) have a high demand in India, especially during festivals and poojas.  

Business Potential & Market Scope:  

- Very low investment of ₹10,000 – ₹50,000.  

- Can be easily operated from home.  

- Continuous demand in temples and households.    

This business requires raw cotton, wick-making tools, and packaging materials. Marketing through local stores and online platforms can boost sales.  

  

6. Candle Making Business    

Handmade candles are widely used for decorative, religious, and therapeutic purposes. With customized designs and scented options, this business has a lucrative market.   

 Business Potential & Market Scope:  

- Investment of ₹25,000 – ₹1,00,000.  

- High profit margins.  

- Can be started from home with a simple setup.    

Raw materials include wax, wicks, essential oils, and molds. Selling through online marketplaces and gift stores can enhance visibility.  

  

7. Aluminum Foil Production      

Aluminum foils are widely used in food packaging, restaurants, and households. The demand for food-grade, eco-friendly foils is increasing.   

 Business Potential & Market Scope:  

- Investment of ₹3,00,000 – ₹5,00,000 for machinery and raw materials.  

- High demand in the food industry.  

- Can be scaled with wholesale distribution.  

Manufacturing involves rolling, cutting, and packaging. Partnering with food outlets and bakeries can boost sales.  

 

8. Digital Printing Business     

With the rise of customized products like t-shirts, mugs, and posters, digital printing is a profitable small business idea.     

 Business Potential & Market Scope:  

- Low investment of ₹1,50,000 – ₹3,00,000.  

- High demand for personalized products.  

- Can operate online and offline.  

Invest in a good quality digital printer, design software, and a marketing strategy to attract customers.  

   

9. Ittar Making      

Traditional Indian perfumes (Ittar) have a niche yet loyal market, particularly among fragrance enthusiasts and religious communities.

 Business Potential & Market Scope:

- Requires ₹50,000 – ₹2,00,000.

- High-profit margins.

- Growing demand for organic, alcohol-free perfumes.

Essential oils, natural extracts, and glass bottles are the key components. Selling through local and online platforms can drive sales.   

   

10. Honey Packaging Unit  

The organic honey market is growing as people prefer natural sweeteners.    

 Business Potential & Market Scope:  

- Investment of ₹1,00,000 – ₹2,50,000.  

- Strong demand in health-conscious consumers.  

- Can be scaled with branding.     

Sourcing raw honey, proper packaging, and marketing are the main requirements.  

   

11. Sanitary Napkin Manufacturing     

With increased awareness about menstrual hygiene, Sanitary napkin Manufacturing has huge potential.  

Business Potential & Market Scope:  

- Investment of ₹3,00,000 – ₹6,00,000.  

- Strong government and NGO support.  

- High demand in rural and urban areas.  

Machinery, raw materials, and a hygienic packaging process are essential.  

   

12. Embroidery Business   

Handcrafted embroidery has a huge market, especially in the fashion industry.  

Business Potential & Market Scope:  

- Investment starts from ₹25,000 – ₹1,00,000.  

- Customization opportunities for fashion brands.  

- Can be started from home.   

Skilled labor and creative designs are key to success.  

  

13. Pen Industry   

Pens are an everyday necessity, making this a steady business.  

Business Potential & Market Scope:  

- Investment of ₹1,50,000 – ₹3,00,000.  

- High demand in schools and offices.  

- Easy bulk production.   

Simple machinery and bulk raw materials ensure cost-effective manufacturing.  

  

14. Handcrafted Jewellery   (Creativity Plays a Vital Role)   

Handmade jewellery is popular among fashion-conscious buyers.  

Business Potential & Market Scope:  

- Investment of ₹50,000 – ₹2,00,000.  

- Unique designs attract customers.  

- High-profit potential.  

Social media marketing and craft fairs help in reaching a wider audience.  

  

15. Foam Mattress Manufacturing  

Mattresses have a stable market with rising demand for comfortable bedding solutions.    

Business Potential & Market Scope:  

- Investment of ₹3,00,000 – ₹7,00,000.  

- Consistent demand.  

- Can be scaled with branding.    

A good quality manufacturing unit and supplier network are essential.  

   

Conclusion   

Starting a small business in India with low investment is an excellent opportunity for aspiring entrepreneurs to achieve financial independence and long-term success. These businesses not only require minimal capital but also offer high flexibility, quick returns, and government-backed support through schemes like Mudra Loans and MSME subsidies.   

The key to success lies in choosing the right business model based on market demand, personal expertise, and available resources. Whether it’s eco-friendly products like biodegradable bags and non-woven bags, daily essentials like sanitary napkins and aluminium foils, or creative ventures like handcrafted jewellery and digital printing, each business model presents a unique opportunity for growth.  

With rising consumer awareness, technological advancements, and increasing demand for customized and sustainable products, small businesses have a bright future in India. By leveraging government support, effective marketing, and strategic scaling, entrepreneurs can turn their small ventures into profitable enterprises. Now is the perfect time to take the first step and build a thriving business with minimal investment.