The versatile and booming economy in India, they say, has something for everybody. With rapidly shifting business paradigms in the country’s digitized economy, market trends keep moving continually. The consumer durables industry in the country is likely to hit $34 billion by 2025. With the country’s massive population and fresh business avenues in the thriving economy, investors find tons of profitable business ideas.
The favorable commercial infrastructure supports 100% FDI in electronics hardware manufacturing. This attracted foreign investments worth $3.68 billion between April 2000 and June 2022. Other sectors, too, offer lucrative opportunities for entrepreneurs and businesses to tap into.
It would take some diligent research and homework to identify your market and channel your investments in India. In this article, we will recommend ten booming business avenues in India to explore.
4 reasons India continues to be a profitable business destination
Let’s look at the prime reasons to start your venture in India.
Economic stability
Over the decades, the Indian economy has demonstrated a steady growth trajectory. This progressive nature of the country’s economy has been an outcome of several structural reforms, higher capital inflows from the government, and increased private consumption.
The country has also improved its position on the grounds of macroeconomic stability. Besides, the country jumped to the 37th position in World Competitive Index from the 43rd position in 2021. This consistent economic progress has been a prime factor that appeals to investors.
Favorable business reforms
The Indian government has left no stone unturned to draw in foreign investment. Over the years, you would find the country easing up its FDI restrictions. Thanks to these concessions, sectors like insurance and defense currently have higher FDI caps.
Naturally, the country has progressed manifold while ensuring ease of doing business. Investing in India continues to be a profitable deal as long as you strategize your plans to perfection.
Digital competitiveness
India’s digital footprint has been growing at a phenomenal rate. Embracing digital technologies, the country offers lucrative digital business avenues. For instance, affiliate marketing currently happens to be one of the most profitable low-investment business ventures in India. The rapid adoption of digital technologies, digital payment methods, and the tech-friendly population in the country makes it an ideal business hub.
Massive consumer market
India has already overtaken France and the UK in terms of market size. The well-off middle-class population and diversity make it an attractive market. Besides, the country continues to be one of the biggest markets for manufactured goods. India’s consumption expenditure is likely to hit the $6 trillion mark by 2030.
Top 10 business ventures to start in India
If you’re looking to start a business or invest in a business in India, here are your top 10 options.
Wedding planner
India’s ornate and elaborate weddings make it a lucrative avenue for wedding planners. These ceremonies involve meticulous planning, right from arranging makeup artists and purchasing jewelry to booking the destination. How about exploring your entrepreneurial segment in this domain? Putting together your networking and organizational skills, you can make wedding events happening.
The lavishness of Indian weddings makes this a million-dollar industry. Given that families generously spend on weddings, the returns start coming in fast. Besides, the sector has several sub-niches, including wedding shoots, destination weddings, decorations and lights, and catering.
Managing wedding events efficiently would turn it into a high-profit business. So, if you prioritize aesthetics and have an eye for details, starting a wedding planner venture would be a money-generating idea.
Courier business
With the unprecedented expansion of the eCommerce sector in India, courier businesses continue to grow. In case you are thinking of a low-investment venture in India, why not start a courier franchise?
The courier business can draw in high profits thanks to the eCommerce boom. You need not establish your brand reputation, given that you can simply partner with an established courier services provider like FedEx or Blue Dart.
Starting a courier business requires a minimal fee. Once you get the franchise, you will gain access to the company’s infrastructure. This would speed up the process of training your employees.
The low investment, coupled with the high demand for courier services in the eCommerce regime, makes it a profit-generating venture. Besides, many offline stores look out for delivery partners to ship products to their customer’s locations. Apart from delivering documents and official transcripts, courier companies are highly sought after for logistics delivery.
Interior designing
If you can get creative with designs and layouts, why not go for the booming interior designing industry in India? In 2022, India’s interior designing market stood at a massive $28.6 billion. Complementing the growth in real estate, interior designing is now a much-coveted profession.
Simply start small and then partner with a few more creative minds and real estate builders. Thanks to social media platforms, marketing your design ideas would be affordable.
For entrepreneurs who love to get creative and prioritize comfort, generating interesting design concepts would be a gratifying profession. So, if you have a refined aesthetic taste, there’s no looking back in this fast-scaling business.
Organic farming
India now has a sizable health-conscious population constantly moving towards healthier lifestyles. This has opened up lucrative business avenues in the organic farming domain. Millennials in India are aware of the health adversaries inflicted by the consumption of genetically modified crops and pre-manufactured grocery products.
The financially affluent higher-middle class in India is also inching towards organic farming for fresh food supply. Considering the massive population in the country, venturing into organic farming would be a lucrative decision.
In this regard, you can proceed with two models. The first one involves growing crops, fruits, and vegetables and distributing them. The second model involves purchasing organically produced food from farmers directly before branding and selling them in cities.
This model has already gained traction, with brands like Organic Tattva and Organic India now operating internationally.
Pet services
Do you love animals and spending time with them? Why not align your interest with a profitable career in a pet service business? The best thing is you won’t need a store to run the venture, and it’s highly profitable.
Pet owners, while on vacations or working outdoors, look out for friendly pet-service providers. They expect them to keep their pets secure. Given that the country has around 31.41 million pet dogs, wouldn’t it be a good idea to venture into pet services?
While 68% of pet owners in India prefer dogs, 34% have cats. Another 17% have fish or other aquatic animals as their pets.
Work flexibility and minimal investment are some of the other perks of venturing into this sector. Besides, pet parents pamper these creatures with luxury and care. They are always ready to shell out extra money to ensure their comfort and well-being. This makes the pet care business a thriving sector in India.
Commercial Cleaning Services
The fast-paced lifestyle in modern times has opened up fresh business avenues for entrepreneurs who think out of the box. Why not launch a commercial cleaning service business and hire trained employees to fit into the industry?
As households spend more time outdoors or stay obsessed with their professions, the demand for house-cleaning services keeps escalating. Besides, people working outstations have their homes vacant for months. They look out for trained experts to clean their homes and restrooms.
With the demand for cleaning services increasing both in homes and commercial spaces, it pays to look into this business model. Unlike many other sectors, cleaning services are likely to have a steady market.
Startup charges are not too high; you simply need a front office to manage the operations. The high availability of trained workers and the moderate wage trends further make it a profitable venture.
Co-working space venture
With employment trends and working regimes changing, India’s demand for co-working space looks decent. Besides, solopreneurs, entrepreneurs, and freelancers who had been working from home are on the hunt for affordable co-working spaces. Thus, venturing into this particular domain of the real estate industry can be a profitable move.
Apart from independent professionals, small businesses and startups are struggling to afford commercial office spaces. This has fuelled a high demand for co-working spaces, particularly in the metropolitans.
Starting a co-working space venture doesn’t require you to buy a property. Simply get an independent floor on lease and customize the configuration to make it an attractive hub for entrepreneurs. With state-of-the-art cubicles, furniture, Wi-Fi, conference rooms, and office amenities, you can transform these spaces into happening workplaces.
Investing in real estate has its perks, and this is a relatively new business model. Besides, NRIs can benefit from the high dollar value in case they invest in real estate in India.
Travel agency
Indians spent a whopping $1.49 billion visiting foreign tourist destinations in January 2023. While the numbers look staggering, the statistics also appeal to business minds.
India continues to be one of the nations boasting the maximum number of travelers worldwide. Besides, India’s natural beauty and diversity make it a preferred travel destination for foreign tourists. The country’s foreign exchange earnings from tourism in 2022 stood at INR ₹1,34,543 crores. So, travel agencies can have a two-pronged approach, targeting both Indian travelers and foreigners.
India’s natural diversity further makes the business of travel agencies a lucrative venture. From mighty mountains to rolling dunes in the deserts, India caters to tourists with versatile tastes.
While running a travel agency, you need to work more on your networking and administration. Besides, you would require able hands for booking reservations and agile people to work as travel guides.
Online bakery business
With a dedicated customer base, you can get creative with recipes as you launch an online bakery business in India. Online bakery happens to be one of the most profitable business models.
A study reveals that the Indian bakery market will continue to grow at a healthy CAGR of 8.5% between 2021 and 2026. It is all set to be a $12.39 billion market by 2026. If you are keen to delve into the food business sector in India, launching your online bakery would be an intelligible move.
Orders for cakes come pouring in during celebrations and events like birthdays, landing on new jobs, anniversaries, and casual parties. Besides, you have the opportunity to get experimental with pastries and cookies.
If you are someone who has always wanted to try out new recipes, starting an online bakery would be a great decision. All you need to start with is a kitchen with an oven. Focus on marketing through social media and other digital platforms. Maintaining product quality and growing your customer base are secrets to success in this business.
Don’t worry about delivering your bakery products; you have food delivery partners like Swiggy and Zomato operating throughout the country.
Cooking classes
While businesses like cloud kitchens and online bakeries are already a hit in India, the demand for cooking classes is visibly rising. Forward-thinking entrepreneurs have realized the true potential of the food industry. Thus, the demand for cooking classes is gradually soaring across the country. It would be a good idea to capitalize on this opportunity and develop a few innovative recipes to emerge as a leader among this population.
Besides, a significant section of the health-conscious population in India is looking for home-cooked meals. This progressively healthy notion makes it gratifying to launch a business where you can train aspirants with cooking lessons.
Moreover, business owners can collaborate with established chefs who can work as trainers. Thanks to YouTube and Facebook, you can offer online classes at any hour of your convenience. This business model is more like an online training or academy for cooking aspirants.
Invest now!
You won’t be running out of ideas when you try to launch a business in India. This article has covered various business models, ranging from low to high investment requirements.
Depending on your ideas and commercial aptitude, you can explore these business models and strategize your plans. Make sure to understand the business laws in India at the outset so that you don’t end up unintentionally infringing the same.
With these ideas, you can embark on your journey to establish a profitable venture in India. The highly diversified market and purchasing power of the masses can transform your ideas into a money-generating venture.
FAQ
Which is the most profitable business sector in India with low investment?
Among other sectors, event planning, handcrafted goods, and organic food are some low-investment ventures that can generate high profits. Besides you can also go for pet care, commercial cleaning services, or affiliate marketing.
Which are the most on-demand businesses in 2023?
With the digital infrastructure in India rapidly expanding, businesses like medicine and food delivery, online teaching, and courier services will be in high demand in 2023. Interior designing, co-working space ventures, and travel agency businesses are also highly profitable.
What is “ease of doing business”?
“Ease of doing business” is an initiative of the Indian government to make business more accessible to small entrepreneurs in India. This essentially involves doing away with redundant procedures and documentation that made the business operation process more cumbersome. The core of the idea lies in allowing the entrepreneur to focus more on the business itself rather than the documentation and filings.
Which is the best city in India to launch a business?
Prioritizing access to strong commercial infrastructure, security, client base, and support from the government, it would be logical to start your business in the metro cities in India. Go for cities like Delhi, Mumbai, Bangalore, or Pune to scale to tap the productive commercial ambiance.
Can foreigners invest in businesses in India?
Of course, foreigners can venture into several sectors in India. The favorable investment policy strategized by the Indian government offers a dynamic business environment for foreigners in India. While foreigners can invest up to 100% in most Indian Private Limited companies, the public sector investment limits are also more liberal than before.
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