Best Profitable Small-Scale Industries in India


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Best Small Scale Industries In India


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 because 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 with no business experience to start off on a large scale even if he/she can 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 include wax, thread, molds, candleholders, thread, aroma, and oil. 


In India, especially in the southern part of the country, almost every meal includes pickles. Pickles are extremely popular in an 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 more reliable. An average investment of Rs. 20,000 to Rs. 25,000 may be sought for starting a small-scale pickle business at home.

Incense Sticks or Agarbattis and Camphors:

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

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

Handmade Chocolates:

Chocolates are among 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 a 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 a 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, molds, herbs, etc. to make an organic business.

An investment of about Rs. 1.5 lakh to Rs. 2 lahks 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 on the balcony. There are several indoor plants that people demand and there are even small areas on the terrace/outside the house that 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.

Handicraft Sellers:

Handicrafts are 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 the handicraft business, and many handicraft products such as photo frames, 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.

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.

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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