Are you searching for retail business ideas in India? Retail business in India is considered as a profitable and lucrative opportunity not only in the metropolitan city but also in small towns and tier 2 and tier 3 cities.
Recently, as developed nations begin to emerge from recession, their economies recover, and unemployment rates begin to fall, the market segments are experiencing some renewed growth.
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new organized players. During the last few years, the Indian retail market has seen considerable growth in the organized segment.
Major domestic players have entered the retail arena and have ambitious plans to expand in the future years across verticals, formats, and cities. For example, companies like Reliance, Tata, Bharti, Adani Enterprise, have been investing considerably in the booming Indian retail sector.
In addition to this, a number of transnational corporations have also set up retail chains in collaboration with big Indian companies.
The Indian retail sector is highly fragmented and the unorganized sector has around 13 million retail outlets that account for around 95-96% of the total Indian retail industry.
The Boston Consulting Group and Retailers Association of India published a report titled, ‘Retail 2020: Retrospect, Reinvent, Rewrite’, highlighting that India’s retail market is expected to nearly double to US$ 1 trillion by 2020 from US$ 600 billion in 2015, driven by income growth, urbanization, and attitudinal shifts.
However, going forward, the organized sector’s growth potential will increase due to globalization, high economic growth, and change lifestyle. Moreover, high consumer spending over the years by the young population (more than 31% of the country is below 14 years) and the sharp rise in disposable income are driving the Indian organized retail sector’s growth.
Here in this article, you will find the 65 most profitable retail business opportunities in India in different segments. It includes agriculture, automobile, apparel & clothing, food & beverages, education, beauty & healthcare, and home & furnishing.
List of 65 Profitable Retail Business Ideas in India
Retail Business Ideas in the Agriculture Sector
#1. Farm Machinery Selling
Agriculture is the most important sector in the Indian economy. Still today, most of the village demographics are engaged in agriculture and farming. Farm machinery and equipment are important items in performing agricultural activity. So, if you live in a village or small town, you can consider this opportunity.
#2. Fertilizer Distribution
Fertilizer comes under the agricultural inputs segment. The local supply of different types of fertilizer, pesticide, insecticide completely depends on the small fertilizer stores of the area. With fertilizer, you can also sell seeds and other tools to the farmers. You need proper license and permission from the concerned authority also.
#3. Hydroponic Store
Actually, hydroponic is a specific practice of growing plants without soils. Here, growers use only water and water-soluble nutrients. As the hydroponic has several advantages over the traditional agriculture, the demand is growing for the hydroponics equipment in our country.
#4. Plant Nursery Shop
A plant nursery shop is a profitable business for any individual. If you have the hobby of gardening, you can transfer your hobby into a profitable venture. Additionally, the low infrastructure cost makes the business revenue-wise more lucrative.
#5. Seed Store
Basically, the seed is the very primary input in agriculture and farming. Farmers can grow only a quality product if they use quality seeds. In India, some of the most important seeds are paddy, wheat, mustard, potato, and other vegetable seeds. If you have some previous experience, you can start seeds retailing and distribution both.
Retail Business Ideas in Automobile Segment
#6. Auto Parts Shop
Actually, you can start an auto parts shop business in both rural and city areas. Even, the business is perfect for small towns. Basically, the auto parts industry caters a wide range of subcategories. It includes two wheeler, four wheeler, construction vehicles etc. However, it is advisable you focus on a specific niche.
#7. Car Washing Zone
The automobile industry is very promising in our country. The vehicle population is also growing very fast. In this scenario, initiating a car washing zone is a highly lucrative retail business for the new entrepreneurs. Generally, washing zones also provide value-added services like air pressure checking etc.
#8. Fuel Station/Petrol Pump
If you want to start a business in the oil and gas industry, you can consider starting a fuel station or petrol pump business. In starting a petrol pump, you must have a large space at a prime location. You can also sell other utility items from the fuel station. Sometimes, fuel stations run a coffee shop or restaurant also.
#9. Two Wheeler Showroom
Two wheeler is an important means of conveyance for both the rural and urban population. In the villages, it’s more of necessity and in the metro cities, it’s more of style. Initiating a motorcycle showroom requires specific permission and moderate capital investment. Read More…
#10. Tyre Store
Tyres have a specific lifespan. And after that certain period, it needs replacement. Therefore, the tyre industry is very vibrant. Definitely, opening a tyre business needs moderate capital investment and a wide space in a good location.
Retail Business Ideas in the Apparel & Clothing Industry
#11. Alter Shop
If you enjoy sewing and making the outfits most perfect for others, you can consider this business. Basically, an alter shop is an evergreen business. Additionally, the business demands very small capital investment. Even, you can start with a 100 Sq Ft retail space.
#12. Apparel Boutique
This is one of the most trending business both in the developed and developing countries. Basically, apparel boutique offers designer garments and several accessories items with unique designs. However, you must have some design sense and fashion expertise in starting this business.
#13. Blouse Shop
If you want to start a retail business in the garment industry with small capital, you can consider this. You can find a lot of designer blouse manufacturers and wholesalers to start this business. Also, this business type of retail store requires small space to operate.
#14. Embroidery Unit
If you have embroidery designing skill, you can open an embroidery unit. However, you will need to procure the stitching machines, threads and other tools for running the unit. Also, you can start the business from home or a retail location.
#15. Fabric Store
Actually, a fabric store is a traditional retail business. Additionally, the business is easy to start and operate. You can keep the stock of fabrics according to the local market demand. However, the business demands substantial capital investment in creating the inventory stock.
#16. Kids Store
You can open a kids store as small medium and also as a large store. Nowadays, kids stores sell a wide range of products. The list includes garments, accessories, toys, shoes, kids home decor items, books, CDs, educational stationery etc. However, you must concentrate on a specific age group and keep the materials of good quality.
#17. Ladies Garments Store
In the readymade garment industry, the ladies garment is the most promising segment. Women are passionate about the outfits. Also, they buy frequently not only in the celebration time but also on the regular basis. A wide range of manufacturers and wholesalers are also available to get the startup inventory.
#18. Leather Fashion Store
If you want to start a high-value business in the fashion industry, you can consider opening a leather fashion store. Actually, leather fashion stores sell the leather made fashion apparels. The list may include leather jackets, gloves, bags, and other utility items.
#19. Saree Shop
Actually, saree is an Indian attire. And you can find a lot of different types of regional sarees here. Some of the most popular are Kanjivaram, Banarasi, Sambalpuri, Tant, Fulkari. Chikankari etc. However, the overall success of a saree shop hugely depends on the collection and quality products. Read More…
#20. Shoe Laundry
Shoe laundry business includes the services of collecting shoes, getting them cleaned and repaired if required, making delivery the shoes at client’s doorsteps and getting the payments. Additionally, you can offer different services like cleaning, washing, repairs, color correction, maintenance services, footwear restoration etc.
Retail Business Ideas in the Food & Beverages Segment
#21. Banquet Hall
Basically, the banquet hall is a large building or room used for feasts. They are specially used for party, function, ceremony, occasion or celebration. Generally, people hire the banquet halls for different purposes. The list may include birthdays, weddings, anniversaries, social gatherings, personal events, festivals, and corporate parties. Read More…
#22. Bar with Restaurant
Bar with a restaurant is one of the most profitable food retail businesses nowadays. However, the business demands moderate to high capital investment. Additionally, you must conduct a market research before initiating the business.
#23. Biryani Shop
In India, you can find a lot of different type of biryani depending on the region and the taste of the local demographics. These are Dhakai biryani, Haji biryani, Hyderabadi biryani, Sindhi biryani, Chettinad biryani, Kalyani biryani etc. Read More…
#24. Butcher Shop
Starting a small butcher shop is an ideal business in both the small towns and metro cities. From the shop, you can sell different types of animal protein items like chicken, mutton etc. However, obtaining registration, and maintaining the hygiene properly are important.
#25. Cake Shop
Basically, starting a cake shop is a lucrative food retail business. The business is easy to start and manage. Additionally, the cake retailing business is perfect for women entrepreneurs too. Any individual can start this business by taking a minimum risk (finance).
#26. Coffee Shop
Basically, people consider coffee shop as a third most comfortable destination after home and office. In addition, the coffee shop is an ideal destination for having chat with friends relatives and even clients and colleagues. Therefore, the demand for the coffee shops is increasing very fast.
#27. Convenience Store
Basically, starting a convenience store is one of the easiest business to start. Actually, a convenience store keeps and sells a range of everyday items. The list may include groceries, snack foods, confectionery, soft drinks, tobacco products, over-the-counter drugs, toiletries, newspapers, and magazines.
#28. Fast Food Restaurant
A small scale fast food restaurant is a profitable business. Depending upon your investment capacity, you can keep it small and simple or large. However, this business is not so easy. You must conduct an intensive market research and craft a business plan before commencing the business. additionally, select the menu and tariff very carefully.
#29. Food Truck
Basically, the food truck is a moving restaurant. Sometimes the business is more profitable even from a restaurant. With some ready eat and cook foods, you can roam around the busy areas in the working hours. However, the business demands moderate capital investment and licensing from the Govt. authority.
#30. Ice Cream Parlor
Ice cream one of the most popular food items among every age group of people. Apart from opening your own brand, you can consider starting a franchise. There are several reputed brands you can find who offers the franchise for selective locations.
#31. Live Bakery
Basically, the live bakery is a new concept of the traditional bakery. Here, you will operate the entire operation live in front of the customers. The customer can see the cake baking and packaging system live. However, the business demands adequate retail space and substantial capital investment.
Basically, a microbrewery sells craft beers of different tastes and flavors. Additionally, you can sell different types of snacks and main course food items too. The business demands substantial capital investment and strategic marketing planning.
#33. Pizza Store
Basically, pizza is an Italian food. Currently, a lot of national and foreign brands are getting huge popularity in the pizza delivery activity. It’s better to start as a franchise partner of a reputed brand. And these days, initiating a pizza franchise requires a lot of funds.
Basically, the restaurant business comes under the food retail segment. Currently, it is a Rs 75000 crore industry according to the industry experts. Also, it is growing at an annual rate of 7%. Some of the highest growing segments are quick service restaurant, casual dining, cafe, and fine dining. Read More…
#35. South Indian Restaurant
Throughout India, people prefer South Indian foods. Dhosa, Idli, Uttapam, Baras are the delicious and tasty food items that have a hot and sour taste. Also, you can consider starting a South Indian restaurant as a franchise partner of an established brand.
#36. Sweets & Snack Store
A small sweets and snacks store business is very much profitable and lucrative opportunity for the first generation entrepreneurs. Generally, this type of stores sells fresh sweets and snacks to retail consumers. And most of the traditional shopkeepers produce the products of their own. Also, the business is profitable in small towns.
#37. Tea Stall
Probably, a tea stall is the most common retail business in India. And also the most low-cost too. Simply, you can open a tea stall even with a Rs 10000 cash. Currently, you can find some franchise opportunity also in the tea stall business. Read More…
#38. Wine Store
If you are looking for a highly lucrative retail opportunity, then a wine store is just perfect for you. The business requires good location, specific licensing and lot of fund to take off.
Retail Business Ideas in the Education Industry
#39. Book Store
Even in this internet era, books are still very relevant for the students, law years, and the researchers. Also, many people still consider books as a good gift item. Hence starting a brick & mortar bookstore is a profitable business in both the metro cities and small towns.
#40. Coaching Center
Students need proper coaching. Also, they need coaching for competitive exams like joint entrance and service exams. Depending on your specific area of interest, you can open a coaching center with a small capital investment.
#41. Hotel Management Institute
Hotel management is a promising sector these days. Actually, the hotel and tourism sector provides employment to a wide group of young pass outs. Hence, the demand for the good hotel management institute is always there. You need proper affiliation and establishment to initiate the school.
#42. Nursing Training Center
This is another a promising sector in the education industry. As the medical industry is growing rapidly, the demand for skill and experienced nurses is also growing. Big hospital brands prefer employing personnel directly from nursing schools. So, if you have interest in this segment, you can consider opening a nursing training institute in your area.
Play school or pre school one of the most successful education businesses in India. It is an easy-to-start business. also, it requires moderate capital investment. If you love spending time with kids, you can definitely consider this opportunity.
#44. School Stationery Store
School and office stationery include a wide range of products including pen, pencil, eraser, exercisebook, drawing copy, glue, art paper etc. You can collect the inventory from the local wholesalers and sell from your small retail store.
#45. Xerox Shop
Xerox shop is a perfect business to start nearby offices, schools, colleges, and residential areas. With Xerox, you can offer other value-added services like bookbinding, lamination etc. In this business, you need a startup capital in purchasing the Xerox machine, papers and establishing the store.
Retail Business Ideas in the Beauty & Healthcare Sector
#46. Barber Shop
Initiating a barbershop is a financially lucrative business. And you can earn a handsome profit from a store. However, the overall success of the business highly depends on the location, store amenities, and efficient manpower.
#47. Beauty Salon
If you want to start a business in the beauty industry, then you can consider starting a beauty salon business. Additionally, the business offers several niche opportunities to the owners. Also, the business is very suitable for women entrepreneurs.
#48. Cosmetics Shop
The use of cosmetics is increasing very fast globally. It is not only women, but men are also very much conscious about looks. Hence, you can consider starting a cosmetics store at your location with a range of items. You can keep both the chemical and organic items to address the bigger audience.
If you enjoy work out and have specific knowledge, you can start a gym. In starting, you can open the gym at your home also to keeping the startup cost low. However, a commercial retail operation ensures better profitability. The business demands moderate capital investment.
#50. Hair Salon
In the beauty industry, a simple hair cutting solon can ensure good ROI. Additionally, for starting a hair salon business, you don’t need to be a beauty expert. Even, if you don’t have any prior experience, you can start the business after attending a hair cutting training session. Additionally, you can open the salon with a comparatively small retail space.
#51. Imitation Jewelry Shop
Imitation jewelry is also popular as artificial jewelry or costume jewely. As the procide for the gold and silver is increasing, the common people can only afford imitation jewelry for both the regular and occasional use. It is an easy business. And it requires very small investment to start.
#52. Medicine Shop/Pharmacy
If you have an education background in chemistry, you can open a medicine shop or pharmacy. The medical industry is growing and the growth rate is 18% per annum in India. Study the existing competition and check the licensing issues in your locality. Also, you can promote your retail medicine store online from a small eCommerce store of your own.
#53. Nail Art Shop
This is another emerging business in the beauty industry. Right from nail painting and decorating, the nail art industry is booming now. Additionally, you can start this business with a small retail space. However, a mall kiosk or shop-in-shop is the best location for starting a nail art shop business.
#54. Pearl Jewellery Store
If you want to start a jewelry store, you can consider pearl jewelry, Basically, pearls are semi-precious items. Additionally, the pearls come in different colors and shapes. Some of the most popular items are bangles, necklace, earrings etc. Also, you can consider starting a pearl jewelry store as a franchise.
#55. Perfume Store
Do you enjoy different types of fragrances? If yes, you can start a perfume store with moderate capital investment. Actually, perfume is a luxury item and you will need to conduct a thorough market research before commencing the business. Generally, a mall kiosk operation works best in perfume retailing business.
It’s an emerging business in the beauty and healthcare segment in India. Spa rejuvinates the whole body and mind too. It’s purely a business for the metro cities. It’s a risky business. However, it has lucrative profit potential also.
Retail Business Ideas in the Home & Furnishing Segment
#57. Aquarium House
probably, fishes are the most beautiful pet. Nowadays, people keep and maintain the aquarium beautification also. If you love caring fishes and decorating aquariums, you can start this business with small capital investment.
#58. Craft Store
People always love to buy utility and gift items from the craft stores. Because craft stores offer unique and innovative products to clients. You can procure the products from the home-based craftsmen of your area and sell them from your store.
#59. Crockery Store
Crockery store is a very common and easy business in India. Apart from the home use, people buy crockery sets for gifting purpose also. You will need to find out right wholesalers and suppliers to get the inventory for starting a crockery store.
#60. Departmental Store
Basically, departmental stores offer a wide range of products in different product categories. The category list includes clothing, furniture, home appliances, toys, cosmetics, houseware, gardening, toiletries, sporting goods etc. It also caters food, books, jewelry, electronics, stationery, photographic equipment, baby products etc.
#61. Electrical & Electronics Store
This is another great sector to invest. Additionally, the electrical and electronics segment offers a wide range of business models. Also, you can start with only lighting or electrification equipment etc. However, craft a detailed business plan before commencing the business.
The florist is actually a retail flower shop. You can sell loose flowers, bouquet, ornamental plants etc. Additionally, you can take orders for decorating gates or occasion venues. The business profitable if you can source the fresh flowers in a right way. Additionally, you must have a good storage system for keeping the flowers fresh.
#63. Furniture Store
Currently, the small towns and cities are witnessing a major shift in consumer lifestyle and preferences and have thus emerged as attractive markets for retailers to expand their presence. Also, the big brands are offering FREE home delivery and fittings facility. Hence, a full-scale furniture shop with home decor and lighting options is a perfect opportunity for the retail entrepreneurs
#64. Mobile Store
A multi-brand mobile store is a profitable business in both developed and developing countries. In today’s era of internet, the demand for different types of smartphones and feature phones and increasing very fast. Also, you can sell different types of mobile accessories from your store.
#65. Pet Store
A pet store is a very lucrative business basically for the pet lovers. First of all, try to configure the pet population of your locality and judge the potential competition. Generally, a pet store sells a wide range of products related to pets. The list includes food, clothing, accessories, skin care products, grooming items etc.
#66. Toys Store
Children love toys. Also, toys help them in developing their mind properly. Toys helps in learning also. So, most of the time parents look for the innovative and good quality toys for their kids. Initiating a toy store requires moderate capital investment and a good location.
So, these are the most profitable retail business you can start with small capital investment. Generally, the overall success of the retail business depends on the product knowledge of the entrepreneur and the conviction towards that particular product. We hope the list of retail business ideas is enough inspiring for starting a small retail business of your own.