In India, a budget of ₹3 lakh opens up strong possibilities to build a micro-scale manufacturing, trading, or service business. You can now afford basic equipment, licensing, some marketing and initial inventory - enough to launch a serious business from scratch.
Whether you’re a first-time founder, a homemaker, a side-hustler, or someone tired of job insecurity — this guide gives you 20 solid business ideas you can start today.
Who This Guide Is For
Micro-entrepreneurs & MSME aspirants
Women looking to start home-based businesses
Traders, resellers & shopkeepers ready to diversify
Professionals ready to turn skills into income
How This Guide Helps You
Each idea includes:
Estimated Setup Cost (within ₹3L)
What You Need to start
Where to Sell or Offer (online + offline)
A bonus Pro Tip for growth
For better understanding, we have segmented Ideas based on their type i.e., Product and Service Based. For navigation, you can use the content list:
Product-Based Business Ideas for a budget of ₹ 3 lakh or less
1. Mini Agarbatti or Dhoop Stick Manufacturing
Setup Cost: ₹1.5–2.5 lakh
What You Need: Mixer machine, charcoal/wood powder, essential oils, packaging
Where to Sell:
🛒 Kirana shops, puja stores
🌐 Amazon, Flipkart, Meesho, WhatsApp
Pro Tip: Sell fragrance sampler kits to attract bulk buyers.
2. Cold Pressed Oil Unit (Small Scale)
Setup Cost: ₹1.5–2.2 lakh
What You Need: Mini oil expeller, groundnuts/sesame, bottles, FSSAI license
Where to Sell:
🛒 Organic stores, local housing groups
🌐 Instagram, WhatsApp, Sumvaad Bazaar
Pro Tip: Use Reels to show the oil-making process — builds instant trust.
3. Tailored Clothing Resale with Custom Work
Setup Cost: ₹2.5–3 lakh
What You Need: Wholesale stock, tailoring tools, branding material
Where to Sell:
🛒 Boutique stall, exhibitions
🌐 Instagram, Meesho, Sumvaad Bazaar
Pro Tip: Offer basic size customization or fall-pico stitching for extra margins.
4. Paper Plate & Cup Manufacturing
Setup Cost: ₹2–3 lakh
What You Need: Semi-automatic machine, paper rolls, die molds
Where to Sell:
🛒 Food vendors, caterers, local event planners
🌐 B2B WhatsApp groups, Justdial
Pro Tip: Pre-print bulk orders with event names to attract regular clients.
5. Ready-to-Fry Snack Packs (Papad, Namkeen)
Setup Cost: ₹1.5–2.5 lakh
What You Need: Mixer, dryer, raw materials, packaging
Where to Sell:
🛒 Kirana stores, society stalls
🌐 Swiggy Minis, WhatsApp, Amazon
Pro Tip: Start with ₹20–₹30 sample packs — great entry point for new buyers.
6. Masala & Spice Powder Unit
Setup Cost: ₹1.5–2.5 lakh
What You Need: Grinder, raw spices, pouches, FSSAI license
Where to Sell:
🛒 Local groceries, food stalls
🌐 Instagram, Meesho, Sumvaad Bazaar
Pro Tip: Bundle 3 masalas together as a “home cooking kit.”
7. Eco-Friendly Festival Kits (Diya, Rangoli, Rakhi)
Setup Cost: ₹1–2 lakh
What You Need: Handmade items, craft material, packaging
Where to Sell:
🛒 Gift stores, school PTAs
🌐 Amazon Handmade, Meesho
Pro Tip: Offer custom kits for corporate gifting and events.
8. T-Shirt Printing & Branding Service
Setup Cost: ₹2.5–3 lakh
What You Need: Heat press, blank tees, basic design software
Where to Sell:
🛒 Schools, birthday parties, coaching centers
🌐 Instagram, Sumvaad Bazaar, Flipkart
Pro Tip: Offer “starter packs” for teams or birthday groups.
9. DIY Herbal Skincare Kits
Setup Cost: ₹1–2 lakh
What You Need: Herbal powders, oils, jars, labeling
Where to Sell:
🛒 Salons, gift stores
🌐 Instagram, WhatsApp, Meesho
Pro Tip: Sell ₹99 trial kits — they convert well and build trust.
10. Refurbished Furniture Resale
Setup Cost: ₹2–3 lakh
What You Need: Basic carpentry tools, used furniture stock, paints/laminates
Where to Sell:
🛒 Flea markets, urban colonies
🌐 OLX, Facebook Marketplace, Sumvaad Manthan
Pro Tip: Refinish small tables & stools — quick turnover, great margins.
Service-Based Business Ideas for a budget of ₹ 3 lakh or less
1. Home-Based Digital Marketing Services
Setup Cost: ₹1.5–2.5 lakh
What You Need: Laptop, certifications (Google/Meta), Canva Pro, ad budget
Where to Offer:
🛒 Local shops, schools, real estate brokers
🌐 Freelancer platforms, Sumvaad Manthan
Pro Tip: Start with ₹3–5K/month packages for 3 clients.
2. Freelancer-Led Printing & Branding Services
Setup Cost: ₹1–2 lakh
What You Need: Printer or tie-up vendor, branding samples
Where to Offer:
🛒 Local events, political offices, school functions
🌐 Instagram, WhatsApp, Sumvaad
Pro Tip: Bundle printing + delivery as a “done-for-you” service.
3. Cloud Kitchen for Local Orders
Setup Cost: ₹1.5–2.5 lakh
What You Need: Kitchen setup, food safety license, packaging
Where to Offer:
🛒 PGs, hostels, offices
🌐 Zomato, Swiggy, WhatsApp
Pro Tip: Launch with a single-item focus — biryani, thali, paratha, etc.
4. Boutique Salon or Grooming Services
Setup Cost: ₹1.5–2.5 lakh
What You Need: Basic salon gear, beauty products, one room setup
Where to Offer:
🛒 Home clients, women’s groups
🌐 UrbanClap, local FB groups
Pro Tip: Doorstep grooming for women & kids is highly in demand.
5. Language or Skill Training Centre
Setup Cost: ₹1.5–2.5 lakh
What You Need: Room space, TV/projector, whiteboards, printed materials
Where to Offer:
🛒 School tie-ups, coaching centres
🌐 WhatsApp batches, Telegram groups
Pro Tip: Teach 1-hour spoken English or Excel crash courses — high ROI.
6. Local Tour Guide + Travel Booking Services
Setup Cost: ₹50k–₹1.5 lakh
What You Need: Mobile, website, basic booking network
Where to Offer:
🛒 Temples, forts, homestays
🌐 Google My Business, TripAdvisor
Pro Tip: Offer “short 2-hour walking tours” for quick bookings.
7. Deep Cleaning or Home Sanitisation Services
Setup Cost: ₹1.5–2 lakh
What You Need: Machines, tools, chemicals, uniform
Where to Offer:
🛒 Apartments, shops, clinics
🌐 Justdial, NoBroker, local forums
Pro Tip: Offer combo packages (1BHK + kitchen) to increase order size.
8. Elderly Home Care or Companion Service
Setup Cost: ₹1–2 lakh
What You Need: Staff (trained nurse or assistant), basic first-aid, ID system
Where to Offer:
🛒 Housing societies, gated communities
🌐 Care-focused Facebook groups, local listings
Pro Tip: Start as a referral-based service to build trust quickly.
9. Mobile Repair + Accessories Sales
Setup Cost: ₹2–3 lakh
What You Need: Repair tools, display counter, stock of accessories
Where to Offer:
🛒 Bus stands, colleges, shopping streets
🌐 Flipkart, Meesho, WhatsApp
Pro Tip: Offer basic repair + free tempered glass combo.
10. E-Commerce Store Management for Local Sellers
Setup Cost: ₹1.5–2 lakh
What You Need: Laptop, product listing tools, account setup skills
Where to Offer:
🛒 Local factories, resellers
🌐 Meesho, Amazon, Flipkart onboarding
Pro Tip: Charge a setup fee + % commission — zero stock risk.
Licensing, Tax & Registrations - What to Know Before You Start
Whether you’re starting a service or product business, getting basic documentation in place protects you and builds trust with buyers. Here are the essentials most small Indian businesses need:
1. GST Registration
Mandatory if your turnover crosses ₹20 lakh/year (₹10 lakh for NE states)
Optional but beneficial even below this — helps with invoices and B2B credibility
2. Udyam (MSME) Registration
Free and can be registered online at Udyam Official website.
Helps access government schemes, subsidies, loans
3. FSSAI License (for food-related businesses)
Required even for home kitchens and small-scale sellers
Apply at official FSSAI website or contact an Agency.
4. Shop & Establishment License
Required by most states if you have a physical setup or employees
Apply through your state government’s labor department portal
5. Trademark or Brand Name Registration (Optional)
Useful if you’re building a product line or unique name
Can be done online via ipindia.gov.in
6. PAN + Current Account in Business Name
Many platforms ask for business PAN + current account for payouts
You can open one easily once you have a GST or Udyam certificate
Pro Tip
Start lean - register only what’s needed in your state or category. But keep things clean from the start. A registered business builds trust faster.
To know more about Legal Compliances for running a business in India, read here.Tools & Resources to Help You Run the Business
Government Schemes
PMEGP (Khadi Loan): Upto ₹10 lakh for manufacturing/service
Mudra Loan (Shishu/Tarun): ₹50k–₹5 lakh, collateral-free
State MSME Schemes: Subsidy + training in Gujarat, Tamil Nadu, UP, etc.
Udyam Registration: Get access to tenders, schemes, subsidies
To know more about Government of India Funding Schemes, read here.Action Plan
Choose an idea that fits your skills, local demand & access to raw materials
Do local market survey — find who’s selling, at what price
Use 30–40% of budget for machinery/setup
Use rest for marketing, early ops & working capital
Track every expense, reinvest profits, and keep building trust
Disclaimer
The business ideas and budget estimates provided in this guide are intended as general guidelines. The actual costs of starting and running a business may vary based on various factors such as location, local market conditions, government regulations, resource availability, and other on-ground challenges. It is recommended to conduct thorough market research and consult with industry experts or financial advisors before making any investments.