Small businesses play an important role in the economy of India. There are more than 6.3 crore MSMEs in the country, contributing to 30% of the GDP.
These small businesses which are run by an individual entrepreneur or a group of individuals provide employment opportunities to around 40% of the workforce in the country.
At a when the country is at crossroads due to the impact of the covid-19 pandemic, small businesses are seen as a ray of hope for the revival of the economy of India.
In order to provide impetus to the small businesses that are badly hit by the pandemic, the Government of India has taken several measures such as revising the definition of MSMEs, providing financial assistance, disallowing global tenders, etc.
With support from the government and a huge domestic market, the MSME industry is poised for robust growth in India post covid-19.
List of 5 Small Businesses to Start
Here is the list of the top 5 fast-growing sectors in the Indian manufacturing industry and profitable manufacturing business ideas in the respective sectors:
1. Food Processing
India is one of the fast-growing food processing markets in the world. The food processing market in India is expected to become USD 535 billion by 2025-26.
India’s growing urban population, rising white collar working population are driving the food processing industry in the country. India’s agricultural strength serves as a base for the food processing industry.
The investment required to start food processing is relatively low, starting from 50 lakhs. So, it is one of the viable sectors for entrepreneurs with a limited budget. It is also a safe investment option, taking into account the demand for food products throughout the year.
Some of the trending business ideas in the food processing industry include:
1. Millet-based foods
2. Nutraceutical foods
3. Diabetic foods
4. Vegan foods
5. RTE/RTC foods
FMCG is one of the few industries that offers business opportunities to any individual with limited capital investment. FMCG products are used frequently by everybody on a daily basis.
So, there will be continuous demand for these products. There are many FMCG companies in India that remained almost unaffected by the covid-19 pandemic.
The investment required to start FMCG can range from a few lakhs to crores, depending on the products. As the capital investment required is low, the FMCG is attracting several entrepreneurs into the sector.
Some of the best FMCG business ideas in India include:
1. Processed foods
4. Soaps & Detergents
5. Baby Care Products
3. Chemical Manufacturing
Chemicals are used in almost every sector right from food processing, pharma to textile and automobile. So, the demand for chemicals is growing rapidly day by day. Interestingly, the chemical industry acts as its major consumer.
Many chemicals which find applications across various industries are produced by processing basic chemicals, making the chemical industry its own consumer.
India is the sixth largest producer of chemicals in the world. The chemical industry in India is highly diversified with more than 80,000 commercial products.
Therefore, the sector offers numerous business opportunities to small and medium scale industries in the country.
Some of the major chemical manufacturing business ideas in India include:
1. Inorganic chemicals
2. Organic chemicals
4. Consumer Electronics
India is one of the largest consumer electronics markets in the world. Conventionally, India has been dependent on China to meet domestic consumer electronics needs. However, the situation is changing slightly with India trying to become self-reliant in the manufacturing sector.
The appliances and consumer electronics market in India is expected to reach USD 21.18 billion by 2025 from USD 10.93 billion in 2019. India’s growing urban population is expected to contribute to the major share of the market.
Some of the major consumer electronics business ideas include:
1. LED light
2. Wearable devices
3. Mobile phone accessories
4. Electric water heater
5. Portable audio appliances
5. Packaging Industry
Packaging is an essential element in almost every industry. In fact, packaging plays a major role in influencing the purchase decisions of the consumer.
Packaging helps to protect the product and also serves as a marketing tool. So, businesses must take extra care while deciding the packaging for their products.
The packaging industry in India has been growing rapidly over the past few years and is expected to become USD 204.81 billion in the next five years.
As many state governments in the country are coming up with policies to ban the usage of plastic packaging to curb the use of plastic, the demand for other types of packaging is increasing in the country.
Some of the major packaging business ideas in India include:
1. Air bubble sheet
2. Shopping bag making
3. Corrugated box packaging
4. Paper packaging
5. Jute bag
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