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Tata Capital > Blog > Loan for Business > Top 10 Small Business Ideas in India

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Top 10 Small Business Ideas in India

Top 10 Small Business Ideas in India

Want to start a business of yours? Don’t know what to do? You are not the only fish in the ocean. With increasing startup and continuous support for self-employment, the number of resignations has increased. People are giving up their 9 to 5 jobs in search of a better option and to be their own boss. In India, the IT industry saw a record attrition rate reason being better opportunities and stable jobs.

Have trouble finding some profitable business ideas with low startup costs? Here are the top 5 most successful small business ideas in India!

1. Organic Farming

Researchers expect the global organic farming market to grow to $257.85 billion in 2026. In organic farming, farmers grow crops without using artificial chemicals, insecticides, or other pest control measures. Manure produced naturally by animals—such as through goat farming, animal husbandry, etc.—is used in agriculture to enrich the soil.

Along with customers, individuals like farmers, managers, researchers, and policymakers are very enthusiastic about promoting organic farming in the nation. Additionally, organic farming improves diversity, preserves the environment, restores the natural health of the soil, and increases crop productivity, all of which increase the farmer’s income.

The fastest growth of your company will result from choosing the right customers to target. Some of the customers you should target will:

  • Hotels and Commercial eateries
  • Retail grocery stores
  • Cafes’
  • E-commerce

Having your farm near the market will mean that the goods you produce for sale can be transported quickly. Additionally, it lowers the cost of delivering supplies to the farm.

The growing purchasing power and health consciousness of Indian consumers make this the ideal time to enter the market, making organic farming a successful small business idea.

2. Tiffin Service Business

People leave cities to settle in another to chase and fulfil their dreams. While being away from their home, the thing that they miss the most is a home-cooked meal. Tiffin service business is another most successful small business idea in India.

India’s food service industry is rapidly growing and is expected to touch the Rs. 6 trillion marks by 2023.

In a meal business, you must provide healthy, fresh and nutritious food to people. If you can do that, it can easily be a successful small business idea for you. To promote your business, you can put up flyers near colleges and offices, as your primary target audience will be working professionals and students. You can even turn to digital media to advertise your product.

However, before jumping onto the ship, thoroughly study market demand. If you think you have quite many customers to cater to but don’t have enough, you will need to invest money to move to a little larger space. Not only this, but you will also have to spend money on acquiring fresh vegetables and all the necessary equipment like big utensils.

3. Dropshipping Business

This most successful small business idea in India is ideal for you if you don’t want to get involved in the manufacturing or production of goods but have strong marketing abilities.

Dropshipping is a retail practice where a store sells products without having to keep them on hand. Instead, it is the front of the store where goods are sold. To put it simply, whenever you sell something through the store, you buy the item from a third party and send it straight to the customer. As a result, you can save time and money by not having to store any inventory.

Its ability to take care of shipping and order fulfilment makes it a successful small business idea in India. To be a long player in this business, you should keep two things in mind:

  • For your store, create a niche. You can market your niche products in this way to target markets more successfully.
  • You should have a solid marketing plan to bring prospects that will turn into clients. For this, you can either go with organic marketing or paid marketing tools, for which you will have to invest some money.

According to projections, e-commerce sales in India will increase at a rate of 51% per year, providing the most significant opportunity for business owners. Dropshipping makes opening an online store in India a low-risk business model.

4. Event Management

We Indians love to celebrate everything on a grand scale, whether it’s a wedding, baby shower, product launch, or store opening. With such large celebrations, hosts don’t have enough time to complete everything. This is where an event management team comes into play.

Although event planning may seem straightforward, several minute details elevate it to a higher level. It includes all actions taken from the beginning of the planning process through the event’s actual date and conclusion.

Furthermore, it is anticipated to grow at an average annual growth rate of 13.48% from 2021 to 2028, reaching USD 2,194.40 billion.

There is no need to invest a lot of money in event management, which makes it an attractive business opportunity for you. Starting an event management company is something you can do at home. Then, if you’d like, you can move into a physical office space as your company expands and more people join your team.

Apart from its low investment, one thing that makes it an excellent small business idea in India is that the profit margin is as high as 40%, not too shabby, right?

This industry will survive if people are around, so you shouldn’t worry about it going out of style anytime soon.

5. Handicrafts Business

People no longer go towards high-end luxurious products when it comes to gifting. Instead, they look for things that have a personalized touch. In addition, handicrafts are becoming incredibly popular as travel and tourism in the country increase. Tourists spend a lot of money on souvenirs and other handmade goods, which gives local artisans and craftsmen more opportunities to create and market valuable handicrafts.

Additionally, the market is expanding due to the rising demand for handcrafted décor accessories in restaurants, offices, and homes. Furthermore, by FY 2022–23, India’s handicraft exports will surpass Rs 24,000 crore, making it a successful small business idea in India.

To start a handicraft business, you need a location that meets your needs, and it could be a small or large area. A handicraft product is usually made by hand, but if you want to reduce production time, you can use machinery.

You can make a wide variety of goods, some of which are listed below:

  • Woodware
  • Art metal Ware
  • Hand printed Textiles and Scarves
  • Embroidered and Crocheted Goods
  • Zari and Zari Goods
  • Imitation Jewellery
  • Sculptures
  • Pottery and Glassware
  • Attars and Agarbattis 

You can sell your products online to earn a good amount of money; there are many online platforms to choose from. Plus, you can use social media sites like Instagram to your advantage by posting videos showing how products are made, piquing people’s interest in your brand and generating leads.

6. Cloud Kitchen

With the rise of online delivery platforms, the concept of cloud kitchen has taken flight. This innovative dining model focuses exclusively on preparing and delivering food to online customers—no dine-in space required. All you need to kickstart your cloud kitchen venture is a smartphone, a solid internet connection, and a passion for cooking.

By eliminating the need for front-of-house staff—like servers and hosts—and avoiding the expenses tied to maintaining a dine-in space, cloud kitchens significantly reduce overhead costs. These savings on staffing and real estate make the business model highly cost-efficient.

Since cloud kitchens have no such physical outlet where the customers can just walk in, they permanently lose visibility. To compensate for this, a powerful marketing and branding strategy is required. This can be achieved by having a strong online presence through websites and social media pages. Additionally, you must have third-party integrations with food delivery platforms or other restaurants.

7. Wedding Planner

The only thing better than attending big Indian weddings is actually planning those weddings. The market for the wedding planning industry has enormous potential in India, and you can leverage this potential to start your own wedding planning business. 

You just need to have a knack for organising events, strong communication skills, creativity to bring unique themes to life, and a reliable network of vendors—like caterers, decorators, photographers, and entertainers. The best part is that your earnings depend on your clients’ budgets, so if you can deliver on their needs and expectations, there is virtually no cap on how much you can make.

Before you begin, understand your target audience, choose whether you want to go for a big fat Indian wedding, a budget-friendly one, or a destination wedding, and then carve out your niche. Your communication skills will help you in building a strong network of vendors. Moreover, you need to market yourself with consistent and engaging content and keep updating yourself on changing trends in the industry.

8. Online Grocery Business

The Indian online grocery market is estimated to reach $26.93 billion in 2027 from $3.95 billion in FY21, expanding at a CAGR of 33%. This growth is driven by the widespread penetration of smartphones, affordable internet, and the demands of a busy urban lifestyle that craves convenience. This phenomenal growth is a golden opportunity staring right at you, as this is the best time to tap into this booming sector.

But first, you need to decide on the model of your business. It can be an inventory model, where you yourself store products, a marketplace model, where you partner with local grocery stores, or hyperlocal delivery that focuses on a specific area.

Furthermore, you must streamline your logistics and delivery operations, build connections with local vendors and farmers, set up competitive pricing, and focus on marketing and branding.

9. Handmade Clothes/Accessories Business

Starting a handmade clothes and accessories business is easy and affordable. This is a great option if you enjoy designing and want to turn your creativity into a business. The demand for handmade products is swiftly on the rise in both national and international markets. Customers today love personalized, sustainable, and high-quality products, and handmade items fit the bill.

To get started, create a business plan that includes your budget, goals, pricing strategy, and target customers. Your next step should be to find reliable vendors or local markets for the raw materials. Design your products with utmost creativity, and keep in mind that customers prefer unique, personalised, and sustainable products.

You should also invest significantly in branding and marketing your product. Build a strong social media presence and set up your store, either a physical one or online. You can even tie up with existing e-commerce platforms for a wider customer reach.

10. Digital Marketing Services

No business can succeed today without the required amount of marketing, be it through advertising, a strong social media presence, or a professional website. This is why digital marketing services are always in demand. If you have a knack for running campaigns and selling ideas, this can be a highly rewarding career.

In terms of investment, you only need to have a proper knowledge of digital marketing tools, which can be acquired through any of the paid or free courses readily available in the market. Once that is done, set up a portfolio, invest in essential marketing tools, and run initial campaigns to land your first clients. 

Once you have a few successful projects under your belt, earning ₹50,000 to ₹1,50,000 per month is completely achievable. Not just that, offering your services to international clients can take your business to the next level.

Tips for Starting a Small-Scale Business

Here are a few basic tips to keep in mind when starting a small-scale business:

  • Research and understand your target market to find the right niche.
  • Start with a simple business plan to outline your goals and strategies.
  • Focus on building a strong customer base through good service and relationships.
  • Recruit a team that aligns with your business needs and goals.
  • Keep your costs low initially by managing expenses wisely.
  • Take advantage of digital tools to market your business effectively.
  • Ensure you comply with local regulations and licensing.
  • Be flexible and adapt to customer feedback and market trends.

Conclusion

Owning a business allows a person to be independent and, if done well, can produce high returns. These were only some of the most successful small business ideas in India. You are good to go if you have a product that fits the market demand and fulfils a customer’s expectation.If you want to be your own boss and are short on cash, the best option for you will be to take a small business loan from Tata Capital. Tata Capital offers multipurpose business loans at a competitive interest rate and flexible EMI options for business loan.

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FAQs

Which business is in demand in India?

Businesses like digital marketing, courier services, outsourcing, broadband services, and freelancing are currently in high demand due to growing digitalization and consumer needs in India.

What are the 5 most successful businesses?

The five most successful businesses in India are IT services, financial services, e-commerce, healthcare, and food processing, known for their steady growth and profitability.

Which business is 100% profitable?

While no business is 100% profitable, service-based businesses like consulting, freelancing, and tutoring typically have high-profit margins with minimal operational costs.

How to start a business with Rs.50,000?

Some of the small-scale business ideas that can easily be launched with Rs 50,000 include digital marketing, wedding planning, home-based catering, handmade accessories or apparel, digital books, blog writing.

What small business is the most successful?

Small business ideas that have the chance of becoming most successful include handmade products like decor items, personal trainers, online tutoring, e-commerce space, app development services, food stall and startups, and dropshipping.

How to start a business with Rs.10,000?

You can launch many businesses with just Rs. 10,000. These business ideas are cloud kitchen, free lancing, IT services, dropshipping, homemade bakery, making homemade spices and scented candles.

What is the easiest business to start right now?

Some of the easiest business to start in today’s scenario are opening a fitness studio as a yoga instructor, starting a food truck, doing cupcake business, and beginning a designer wallpaper business.

Which small business gives high profit?

Profitable small business includes selling bridal apparel and accessories, wedding décor items, doing wedding planning, providing virtual assistant services or renting property for commercial purpose.