With a budget of ₹20 lakh, you can establish medium-scale businesses that combine semi-professional production, specialized services, or advanced retail operations. This allows investment in better equipment, skilled staff, initial marketing campaigns, and a wider reach, including Tier 1, Tier 2, and Tier 3 markets.
Whether you are an aspiring entrepreneur, an MSME looking to expand, or someone ready to move from side hustle to a full-scale business, these 20 ideas provide actionable opportunities for 2025.
Who This Guide Is For
MSMEs aiming for medium-scale operations
Professionals ready to scale from side hustles
Entrepreneurs targeting Tier 1, Tier 2, and Tier 3 cities
Individuals seeking sustainable, scalable income
How does this guide help you? Each idea includes:
Estimated Setup Cost (within ₹20 Lakh)
What do you need? to Start
Where to Sell? or Offer (online + offline)
Location Fit guidance
Pro Tip for growth
Ideas are divided into Product-Based and Service-Based businesses.
Table of Contents
Product-Based Business Ideas
1. Small-Scale Bakery & Café Chain
Setup Cost: ₹15–20 Lakh
What do you need?: Commercial ovens, mixers, café furniture, staff, POS system
Where to Sell?: Local café customers, online delivery, Sumvaad Bazaar
Location Fit:
Tier 1 → Niche desserts, premium coffee
Tier 2/3 → Affordable local café items
Pro Tip: Launch 1–2 outlets first, then scale via franchise model
2. Semi-Professional Clothing Manufacturing Unit (Ready-to-Wear)
Setup Cost: ₹15–20 Lakh
What do you need?: Cutting tables, industrial sewing machines, fabrics, skilled tailors
Where to Sell?: Boutiques, exhibitions, Sumvaad Bazaar, online marketplaces
Location Fit:
Tier 1 → Fashion-oriented collections
Tier 2/3 → Everyday wear and regional clothing
Pro Tip: Collaborate with local designers for unique collections
3. Small-Scale Packaged Juice & Beverage Unit
Setup Cost: ₹15–20 Lakh
What do you need?: Juice extraction and bottling machines, raw fruits, packaging
Where to Sell?: Cafes, restaurants, online, Sumvaad Bazaar
Location Fit:
Tier 1 → Premium organic juice lines
Tier 2/3 → Affordable daily beverages
Pro Tip: Offer subscription-based packages to offices
4. Small-Scale Dairy or Paneer Production Unit
Setup Cost: ₹15–20 Lakh
What do you need?: Pasteurization equipment, cold storage, packaging, raw milk sourcing
Where to Sell?: Local stores, online platforms, Sumvaad Bazaar
Location Fit:
Tier 1 → Premium dairy and organic paneer
Tier 2/3 → Local daily demand
Pro Tip: Supply to hotels, restaurants, and small stores for recurring revenue
5. Specialty Organic Fertilizer or Pesticide Production
Setup Cost: ₹15–20 Lakh
What do you need?: Mixing and packaging machines, raw material, storage
Where to Sell?: Farmers, nurseries, e-commerce, Sumvaad Bazaar
Location Fit:
Tier 1 → High-end organic products for urban farms
Tier 2/3 → Local agricultural demand
Pro Tip: Partner with agriculture co-operatives for steady orders
6. Small-Scale Footwear Manufacturing Unit
Setup Cost: ₹15–20 Lakh
What do you need?: Cutting and stitching machines, raw material, design software, staff
Where to Sell?: Retail stores, exhibitions, Sumvaad Bazaar, online platforms
Location Fit:
Tier 1 → Fashion-focused footwear
Tier 2/3 → Affordable, durable footwear
Pro Tip: Launch with 2–3 signature designs and expand gradually
7. Small-Scale Furniture Showroom & Manufacturing
Setup Cost: ₹15–20 Lakh
What do you need?: Carpentry machines, raw materials, staff, display showroom
Where to Sell?: Urban colonies, offices, online marketplaces, Sumvaad Bazaar
Location Fit:
Tier 1 → Designer furniture
Tier 2/3 → Affordable home and office furniture
Pro Tip: Offer home delivery and assembly services
8. Specialty Chocolate or Confectionery Unit
Setup Cost: ₹15–20 Lakh
What do you need?: Chocolate-making machinery, ingredients, packaging, staff
Where to Sell?: Cafes, bakeries, Sumvaad Bazaar, online
Location Fit:
Tier 1 → Premium gifting chocolates
Tier 2/3 → Affordable sweet treats
Pro Tip: Supply to corporates for events and gifting
9. Small-Scale Home Décor Manufacturing
Setup Cost: ₹15–20 Lakh
What do you need?: Raw materials, production tools, storage, staff
Where to Sell?: Local stores, online marketplaces, Sumvaad Bazaar
Location Fit:
Tier 1 → Designer home décor
Tier 2/3 → Functional, budget-friendly décor
Pro Tip: Offer custom-designed kits for corporate gifting
10. Small-Scale Organic Cosmetic Products
Setup Cost: ₹15–20 Lakh
What do you need?: Ingredients, mixing and packaging equipment, staff
Where to Sell?: Salons, online platforms, Sumvaad Bazaar
Location Fit:
Tier 1 → Premium organic lines
Tier 2/3 → Affordable skincare and personal care products
Pro Tip: Launch hero products first, then expand
Service-Based Business Ideas
1. Mid-Scale Fitness & Wellness Centre
Setup Cost: ₹15–20 Lakh
What do you need?: Equipment, certified trainers, studio space
Where to Offer: Housing societies, corporates, social media
Location Fit:
Tier 1 → Premium fitness and yoga programs
Tier 2/3 → Affordable gym and group fitness classes
Pro Tip: Offer membership packages for recurring income
2. Small-Scale Hospital Laboratory or Diagnostic Unit
Setup Cost: ₹15–20 Lakh
What do you need?: Lab equipment, staff, licensed space
Where to Offer: Local patients, clinics, corporates
Location Fit:
Tier 1 → Advanced tests and specialized services
Tier 2/3 → Basic diagnostic tests
Pro Tip: Partner with local clinics for recurring referrals
3. Mid-Scale IT Services & Software Development
Setup Cost: ₹15–20 Lakh
What do you need?: Office space, certified staff, laptops, software
Where to Offer: SMEs, startups, Sumvaad Manthan
Location Fit:
Tier 1 → Niche software solutions
Tier 2/3 → IT support and website development
Pro Tip: Offer annual maintenance contracts for steady revenue
4. Medium-Scale Travel & Adventure Tourism Agency
Setup Cost: ₹15–20 Lakh
What do you need?: Booking network, vehicles, marketing, guides
Where to Offer: Corporate trips, local weekend packages, online bookings
Location Fit:
Tier 1 → High-end adventure and corporate tours
Tier 2/3 → Local cultural or rural tourism
Pro Tip: Collaborate with local homestays and guides
5. Small-Scale Event Management Company
Setup Cost: ₹15–20 Lakh
What do you need?: Decor, equipment, transport, staff
Where to Offer: Corporate events, weddings, exhibitions
Location Fit:
Tier 1 → Large corporate or luxury events
Tier 2/3 → Weddings and local celebrations
Pro Tip: Offer bundled packages for logistics, décor, and catering
6. Boutique Healthcare Services (Physiotherapy/Wellness Clinics)
Setup Cost: ₹15–20 Lakh
What do you need?:Equipment, certified staff, clinic space
Where to Offer: Local patients, corporates, Sumvaad Manthan
Location Fit:
Tier 1 → Specialized treatments
Tier 2/3 → General physiotherapy and wellness
Pro Tip: Partner with gyms and senior citizen groups
7. Mid-Scale Educational Coaching Centre
Setup Cost: ₹15–20 Lakh
What do you need?: Classrooms, projectors, whiteboards, teaching staff
Where to Offer: Students, professionals, corporates
Location Fit:
Tier 1 → Competitive exams and advanced skill training
Tier 2/3 → Basic academic coaching
Pro Tip: Offer online + offline hybrid batches
8. Small-Scale Printing, Packaging & Branding Services
Setup Cost: ₹15–20 Lakh
What do you need?: Printing machines, raw material, design software, staff
Where to Offer: SMEs, startups, Sumvaad Bazaar
Location Fit:
Tier 1 → Custom branding for corporates
Tier 2/3 → Packaging for local businesses
Pro Tip: Offer bundled design + printing + delivery
9. Medium-Scale Mobile App Development & IT Solutions
Setup Cost: ₹15–20 Lakh
What do you need?: Office, laptops, certified developers
Where to Offer: Startups, SMEs, corporates
Location Fit:
Tier 1 → Specialized apps or SaaS solutions
Tier 2/3 → Basic mobile and website solutions
Pro Tip: Offer subscription models for recurring revenue
10. Mid-Scale Franchise Outlet (Food, Fitness, Retail)
Setup Cost: ₹15–20 Lakh
What do you need?: Franchise fees, setup, staff, inventory
Where to Offer: Urban or semi-urban localities
Location Fit:
Tier 1 → Premium franchise with strong branding
Tier 2/3 → Affordable, demand-driven franchise
Pro Tip: Start with 1–2 outlets, then scale
Legal & Compliance Essentials (Tailored for ₹20 Lakh Businesses)
Udyam Registration: Recommended for all businesseFSSAI License: Mandatory for food or consumable products
GST Registration: Mandatory if turnover exceeds ₹20 lakh
Shop & Establishment License: Required for physical setups with employees
PAN + Current Account: Recommended for financial management
Pro Tip: Start with essential compliance and expand as you scale.
Funding & Support Schemes
Mudra Loan (Tarun/Shishu): ₹50k–5L, collateral-free
PMEGP (Khadi Loan): Up to ₹10 lakh for manufacturing/service businesses
State MSME Schemes: Subsidy + training in various states
Skill & Startup Grants: Available for coaching, IT services, or tourism
Check Udyam portal for eligibility.
Action Plan
Select ideas aligned with your skills, local demand, and access to resources
Conduct detailed market survey — identify pricing, competitors, and suppliers
Allocate 40–50% budget for machinery/setup; remaining for inventory, marketing, and working capital
Track every expense, reinvest profits, and focus on building customer trust
For personalized guidance on which idea suits you best, consider speaking to our consultant in a 1 on 1 session.
Book Now!
Read: 20 Business Ideas Under a budget of ₹ 50Lakh in India (2025)
Disclaimer
All business ideas and budget estimates are indicative. Costs, feasibility, and profits vary depending on location, market conditions, regulations, and resources. Always research and consult industry experts before investing.