In India, even a budget of ₹1 lakh opens strong possibilities to start a small-scale manufacturing, trading, or service business. You can invest in basic equipment, initial inventory, marketing, and licensing, enough to launch a serious business from scratch.
Whether you’re a first-time entrepreneur, homemaker, side-hustler or someone seeking financial independence, this guide gives 20 practical 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 looking to turn skills into income
How this guide helps you? Each idea includes:
Estimated Setup Cost (within ₹1 lakh)
What You Need to Start
Where to Sell or Offer (online + offline)
Location Fit guidance
Pro Tip for growth
Ideas are segmented by Product-Based and Service-Based businesses.
Table of Contents
Product-Based Business Ideas (Budget ≤ ₹1 Lakh)
1. Mini Agarbatti or Dhoop Stick Manufacturing
Setup Cost: ₹50k–80k
What do you need?: Mixer machine, charcoal/wood powder, essential oils, packaging
Where to Sell?: Local kirana shops, puja stores, WhatsApp, Meesho
Location Fit:
Tier 1 → Requires unique fragrance or packaging to stand out
Tier 2/3 → High local demand in temples and shops
Pro Tip: Offer sampler packs to attract bulk buyers.
Compliance/Funding: Udyam registration recommended; GST optional at this scale.
2. Cold Pressed Oil Unit (Small Scale)
Setup Cost: ₹70k–90k
What do you need?: Mini oil expeller, groundnuts/sesame, bottles, FSSAI license
Where to Sell?: Organic stores, housing societies, Instagram, WhatsApp, Sumvaad Bazaar
Location Fit:
Tier 1 → Niche brands sell better
Tier 2/3 → Growing demand for healthy oils
Pro Tip: Share short videos of the oil-making process to build trust.
Compliance/Funding: FSSAI license required; Udyam optional; Mudra Shishu loan can help with equipment.
3. Tailored Clothing Resale with Custom Work
Setup Cost: ₹80k–1 Lakh
What do you need?: Wholesale stock, tailoring tools, branding material
Where to Sell?: Boutique stalls, exhibitions, Instagram, Meesho, Sumvaad Bazaar
Location Fit:
Tier 1 → Competition high, focus on niche stitching services
Tier 2/3 → Strong demand for affordable customization
Pro Tip: Offer small customization options to increase margins.
Compliance/Funding: Udyam registration; GST only if turnover crosses ₹20L.
4. Paper Plate & Cup Manufacturing
Setup Cost: ₹60k–1 Lakh
What do you need?: Semi-automatic machine, paper rolls, die molds
Where to Sell?: Caterers, food vendors, B2B WhatsApp groups, Justdial
Location Fit:
Tier 1 → Niche eco-friendly plates have demand
Tier 2/3 → Steady demand in weddings, schools, local events
Pro Tip: Pre-print bulk orders for regular clients.
Compliance/Funding: Udyam registration recommended; PMEGP loan may help.
5. Ready-to-Fry Snack Packs (Papad, Namkeen)
Setup Cost: ₹60k–80k
What do you need?: Mixer, dryer, raw materials, packaging
Where to Sell?: Kirana stores, society stalls, Swiggy Minis, WhatsApp, Amazon
Location Fit:
Tier 1 → Trendy snack flavors perform well
Tier 2/3 → Popular for daily households
Pro Tip: Start with ₹20–30 trial packs to attract new buyers.
Compliance/Funding: FSSAI license mandatory; Mudra Shishu loan can help.
6. Masala & Spice Powder Unit
Setup Cost: ₹60k–90k
What You Need: Grinder, raw spices, pouches, FSSAI license
Where to Sell?: Local groceries, food stalls, Instagram, Meesho, Sumvaad Bazaar
Location Fit:
Tier 1 → Specialized spice mixes for urban homes
Tier 2/3 → High demand for ready-to-use masalas
Pro Tip: Bundle 2–3 spices as “home cooking kits.”
Compliance/Funding: FSSAI license; Udyam registration optional.
7. Eco-Friendly Festival Kits (Diya, Rangoli, Rakhi)
Setup Cost: ₹50k–70k
What do you need?: Handmade items, craft materials, packaging
Where to Sell?: Gift stores, school PTAs, Amazon Handmade, Meesho
Location Fit:
Tier 1 → Focus on niche or designer kits
Tier 2/3 → Strong demand for traditional festivals
Pro Tip: Offer corporate gifting packages for extra revenue.
Compliance/Funding: Udyam registration recommended.
8. T-Shirt Printing & Branding Service
Setup Cost: ₹80k–1 Lakh
What do you need?: Heat press, blank t-shirts, basic design software
Where to Sell?: Schools, birthday parties, coaching centers, Instagram, Sumvaad Bazaar
Location Fit:
Tier 1 → Niche themes for events and startups
Tier 2/3 → Popular for colleges and local events
Pro Tip: Offer “starter packs” for small groups.
Compliance/Funding: Udyam registration optional; GST optional.
9. DIY Herbal Skincare Kits
Setup Cost: ₹50k–70k
What do you need?: Herbal powders, oils, jars, labeling
Where to Sell?: Salons, gift stores, Instagram, WhatsApp, Meesho
Location Fit:
Tier 1 → Niche organic products sell better
Tier 2/3 → Increasing demand among health-conscious buyers
Pro Tip: Start with small ₹99 trial packs.
Compliance/Funding: FSSAI license if using packaged consumables; Udyam optional.
10. Refurbished Furniture Resale
Setup Cost: ₹80k–1 Lakh
What do you need?: Basic carpentry tools, used furniture stock, paints/laminates
Where to Sell?: Flea markets, urban colonies, OLX, Facebook Marketplace, Sumvaad Manthan
Location Fit:
Tier 1 → Trendy or designer furniture appeals
Tier 2/3 → Steady demand for low-cost refurbished furniture
Pro Tip: Start with small tables & stools for quick turnover.
Compliance/Funding: Udyam registration recommended; GST optional.
Service-Based Business Ideas (Budget ≤ ₹1 Lakh)
1. Home-Based Digital Marketing Services
Setup Cost: ₹50k–80k
What do you need?: Laptop, certifications (Google/Meta), Canva Pro, ad budget
Where to Offer?: Local shops, schools, real estate brokers, Freelancer platforms, Sumvaad Manthan
Location Fit:
Tier 1 → Higher competition, focus on niche industries
Tier 2/3 → Growing demand as local businesses go digital
Pro Tip: Start with 3–5k/month packages for 2–3 clients.
Compliance/Funding: Udyam registration recommended; GST only if turnover exceeds ₹20 lakh.
2. Freelancer-Led Printing & Branding Services
Setup Cost: ₹40k–70k
What do you need?: Printer or tie-up vendor, branding samples
Where to Offer?: Local events, political offices, school functions, Instagram, WhatsApp, Sumvaad
Location Fit:
Tier 1 → Focus on corporate events for better margins
Tier 2/3 → Steady demand for local businesses and schools
Pro Tip: Bundle printing + delivery as a “done-for-you” service.
Compliance/Funding: Udyam registration optional.
3. Cloud Kitchen for Local Orders
Setup Cost: ₹50k–80k
What do you need?: Kitchen setup, food safety license, packaging
Where to Offer?: PGs, hostels, offices, Zomato, Swiggy, WhatsApp
Location Fit:
Tier 1 → Niche cuisines perform better
Tier 2/3 → High demand for affordable daily meals
Pro Tip: Focus on one signature item initially.
Compliance/Funding: FSSAI mandatory; Udyam optional; Mudra Shishu loans applicable.
4. Boutique Salon or Grooming Services
Setup Cost: ₹50k–80k
What do you need?: Basic salon gear, beauty products, one-room setup
Where to Offer?: Home clients, women’s groups, UrbanClap, local FB groups
Location Fit:
Tier 1 → Focus on niche services like threading, manicure
Tier 2/3 → Doorstep services are highly convenient
Pro Tip: Start with referral-based clients.
Compliance/Funding: Udyam registration optional.
5. Language or Skill Training Centre
Setup Cost: ₹50k–80k
What do you need?: Room space, TV/projector, whiteboards, printed materials
Where to Offer?: School tie-ups, coaching centres, WhatsApp batches, Telegram groups
Location Fit:
Tier 1 → Specialized courses in English or IT skills
Tier 2/3 → Growing demand for practical skill courses
Pro Tip: Teach small, high-demand modules (e.g., spoken English, Excel).
Compliance/Funding: Udyam registration optional; government skill schemes can help.
6. Local Tour Guide + Travel Booking Services
Setup Cost: ₹20k–60k
What do you need?: Mobile, website, basic booking network
Where to Offer?: Temples, forts, homestays, Google My Business, TripAdvisor
Location Fit:
Tier 1 → Niche tours for city tourists
Tier 2/3 → Strong demand in culturally rich towns
Pro Tip: Offer short walking tours for faster bookings.
Compliance/Funding: Udyam optional.
7. Deep Cleaning or Home Sanitisation Services
Setup Cost: ₹50k–80k
What do you need?: Machines, tools, chemicals, uniform
Where to Offer?: Apartments, shops, clinics, Justdial, NoBroker, local forums
Location Fit:
Tier 1 → High-rise apartments prefer doorstep services
Tier 2/3 → Demand rising in commercial shops and societies
Pro Tip: Offer combo packages (1BHK + kitchen) to increase order size.
Compliance/Funding: Udyam registration recommended; Mudra Shishu loans possible.
8. Elderly Home Care or Companion Service
Setup Cost: ₹40k–70k
What do you need?: Trained staff, basic first-aid, ID system
Where to Offer?: Housing societies, gated communities, care-focused Facebook groups, local listings
Location Fit:
Tier 1 → Niche services for working families
Tier 2/3 → Growing demand for trust-based referrals
Pro Tip: Start as referral-based for credibility.
Compliance/Funding: Udyam optional.
9. Mobile Repair + Accessories Sales
Setup Cost: ₹50k–80k*
What do you need?: Repair tools, display counter, accessories stock
Where to Offer?: Bus stands, colleges, shopping streets, Flipkart, Meesho, WhatsApp
Location Fit:
Tier 1 → Premium repair services get better margins
Tier 2/3 → High local demand for basic repairs
Pro Tip: Offer small combos like repair + free tempered glass.
Compliance/Funding: Udyam registration optional.
10. E-Commerce Store Management for Local Sellers
Setup Cost: ₹50k–80k*
What do you need?: Laptop, product listing tools, account setup skills
Where to Offer?: Local factories, resellers, Meesho, Amazon, Flipkart onboarding
Location Fit:
Tier 1 → Handle multiple product categories
Tier 2/3 → High demand as sellers go online
Pro Tip: Charge a setup fee + % commission — no inventory risk.
Compliance/Funding: Udyam registration recommended; GST optional.
Legal & Compliance Essentials for Budget Businesses
Even small businesses benefit from proper documentation:
Udyam (MSME) Registration: Free online; unlocks loans, subsidies, and credibility.
FSSAI License: Required for food products (snacks, oils, herbal kits).
GST Registration: Only if turnover exceeds ₹20 lakh; optional for micro-entrepreneurs.
Shop & Establishment License: Needed if you have a physical location or employees.
PAN + Current Account: Recommended to separate personal and business finances.
Pro Tip: Register only what is essential; start lean and expand as business grows.
Funding & Support Schemes
Mudra Loan (Shishu/Tarun): ₹50k–5L collateral-free for micro businesses.
PMEGP (Khadi Loan): Up to ₹10 lakh for manufacturing or service units.
State MSME Schemes: Subsidy + training in Gujarat, Tamil Nadu, UP, and other states.
Check Udyam portal for scheme eligibility and application.
Action Plan
Choose an idea that fits your skills, location, and local demand.
Conduct a mini market survey to identify competition and pricing.
Allocate 30–40% of budget to equipment/setup; remaining for marketing, inventory, and working capital.
Track expenses, reinvest profits, and focus on building trust.
For personalized guidance on which idea suits you best, consider speaking to our consultant in a 1 on 1 session.
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Read: 20 Business Ideas Under ₹3 Lakh in India (2025)
Disclaimer
The business ideas and budget estimates are general guidelines. Actual costs and feasibility may vary based on location, local market conditions, government regulations, and other on-ground factors. Conduct thorough research or consult experts before investing.