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There has been a significant shift in market trends post the COVID 19 induced lockdown. Newer businesses have emerged successful in place of traditional ones making the economy growing like never before. The primary reasons for the rise of these profitable businesses in India are the rise of certain demands and accessibility of digitised models ensuring better scope for development. Moreover, the number of consumers is growing in India and there is always a demand for new product to buy – this helps create fresh opportunities for businesses to tap into.
In this blog we identify the top profitable businesses in India for 2023 and discuss a few of them.
Most profitable small business ideas in India in 2023
(Compiled from multiple sources; in no specific order)
- Interior design and decoration
- Pharmaceutical businesses
- Organic farming
- Labour contractor
- Cloud kitchen
- Fashion accessories
- Exclusive plant nurseries
- Housekeeping services for hotels
- Event management
- Property management
- Pre-recruitment assessment
- Scrap collection
- Website designing
- Online ads service
- Co-working spaces
- Travel agency
- Placement and hiring
- Online classes
- Pet care services
Which businesses are profitable in India for 2023?
Are you considering starting a business? Are you looking at profitable business options that will work in India? Here are the 7 most profitable businesses that you can start without much investment. Moreover, capital to start a business is not very difficult these days as there are many loan providers as well as government schemes which will help you to secure a business loan.
- Cloud kitchen
Also called a ghost kitchen, it refers to a commercial kitchen used for preparing food for online delivery or takeout only. It does not support dine-in customers. The main focus of a cloud kitchen is to cater food orders received from customers online. It is one of the most profitable business ideas in India and requires minimal investment – basically a smartphone and cooking skills. Just ensure to set up a strong logistics and delivery system to win customers. You can also tie up with third party food delivery platforms for a smooth delivery experience. You will however have to plan a strong marketing strategy for online (and even offline) promotions to bring visibility to your cloud kitchen.
- Website designing
With the emergence of e Commerce in a big way post pandemic, having a website is a must. A website is essential for every business as it lends an identity for the business and a way to gain more customers. Online businesses depend on their websites to sell their products/services and make profits. Customers prefer to avail online delivery of their goods than visiting a brick-and-mortar store. Therefore, the demand for website designers and developers to maintain their websites and make them attractive with unique designs is huge. A business in website designing does not require much investment and all you need is a laptop, the technical skills, software and creativity.
With online shoppers in India are expected to reach around 220 million by 2025, website designing as a business is sure to be profitable in India.
- Pharmaceutical business
One of the fastest growing markets in India is the pharmaceutical market. There are few businesses that were not impacted by the pandemic – pharma being one of them. On the contrary, it grew manifold as a result of COVID-19. Since medicines are a primary need, this market will never shrink, making it one of the most profitable business sectors in India.
To start a pharma business, you need to have the required licences and qualifications apart from setting up a plant equipped with machinery and workforce. India at present is the world’s largest generic drug exporter and the market is growing. While there are considerable investments involved in starting a pharma business, the scope for profit in this business is huge.
- Interior designing
There is a huge boom in the interior design market as Indian customers are not shying away from investing in designing their homes with modular kitchens, lightning, smart furniture, aesthetic decorative items and innovative colour schemes. This has paved the way for the designers and design firms to build a profitable business around it as there is significant scope to make profits.
You can consider setting up a business in interiors and designing if you have the skill and creativity. It could yield good profits with low investments, and it can be done from home too. You would only need to build a good network of clients and identify wholesalers to get design materials at a low cost.
- Event management
Another creative business idea for start-ups in India is event management. Indians celebrate many events around the year, and a few are huge budget ones – like a wedding. Smaller events, such as baby showers, birthdays, weddings, corporate parties, product launches, etc., require considerable planning and vendor management and people prefer to outsource the same.
As an event manager, you are expected to handle all aspects of the events – flower decoration, location, catering, menu planning, photography, etc. You can start an event management business without any skillset. You can even operate from home. You can visit your clients to discuss the event preparations. Some of the necessities in event management are good communication and networking skills, a committed workforce and contact with vendors.
- Online classes
Online coaching classes are another cost-effective and profitable business idea you can consider. Online classes, can be in both academics and other areas of expertise like photography, cooking, baking, painting or singing. This is a good business option with huge profits and broader market reach and more so without any major investment as such.
All you would need is a computer with a good internet connection and an expertise in the subject to conduct the class. Since the pandemic, online coaching has been growing steadily in India with people preferring it to offline classes as it saves them the cost and time of commuting.
- Cleaning services
In the modern and fast-paced life, people prefer to outsource services to clean their homes. This creates a huge demand for skilled cleaning services in the cities. A business in cleaning service may operate in two ways – providing of household staff and offering professional cleaning services. All you would need is a good team of trustworthy cleaning personnel and a network of customers. You can also diversify your business by including pest control, festival cleaning, window cleaning, bird netting, whitewashing, etc. To increase your reach, you can also advertise your business on social media platforms.
Wrapping Up: How to set up a profitable business in India?
There is a significant rise of small businesses in India since the pandemic. Some businesses like cloud kitchen, website designing, online teaching, interior decorations are some of the top businesses that are trending in 2023. While some of these business options require specialised skills sets, some can be set up with minimal skills.
Before you start a business, it is essential to know your strength and weaknesses and analysing the market well. Also, remember to register your business once you set it up on the Udyam Portal to be eligible for government loans and subsidies. Note – Not all businesses fall under the list of MSME businesses. If you want to leverage MSME benefits from the government, it is recommended you learn more about it.
In case you need assistance to grow your business, you can visit B2B platforms for MSMEs, like Tata nexarc. At Tata nexarc, our goal is to help MSMEs find new opportunities and accelerate growth. Our offerings include small business loans, information on government tenders, logistics solutions, etc. to boost your business growth.