Top 60 Small Scale Manufacturing Business Ideas in India for 2023

Do you want to start a small manufacturing unit in India with low capital? Looking for small-scale manufacturing business ideas in India that required low investment to start? Find below a list of profitable manufacturing businesses that are easy to start and have a high earning potential.

You can start these below-mentioned best manufacturing businesses on a small and medium scale in India:

List of 60 Manufacturing Business Ideas in India

#1. Agarbatti Making

It is without saying, Agarbatti making business is one of the most profitable small manufacturing business ideas in India. You can also start this business from home with a simple hand-operated machine.

#2. Aluminium Door Window Fabrication

You can start this business in metro cities as well as in small towns in India. The business is very profitable and demands a small capital investment. The demand for aluminium door and windows are increasing very fast.

#3. Artificial Flower Making

The artificial flower industry is a growing industry in India. Generally, artificial flowers come in clothes or plastic materials. And these are everlasting flowers. Because of their long shelf life, these products are gaining rapid popularity in the design and decoration industry.

#4. Bakery

Initiating a small-scale bakery in India is a profitable manufacturing business. Generally, the bakery produces a wide range of baked items. The list includes biscuits, cake, bread, cookies, etc. According to the local market demand, you can start a bakery by concentrating on niche items.

#5. Biscuit Making

You can start a biscuit and cookie-making business right from your kitchen. If you are a passionate baker and enjoy baking, you can start this business. Additionally, you can start this business with simple machines and equipment.

#6. Banana Chips Manufacturing

The demand for banana chips is growing in the Indian market. If you are staying near the banana-producing region, consider starting a small manufacturing unit of banana chips.

#7. Candle Making

Candle manufacturing is a home-based business in India and is a good money-making idea for housewives and moms who are looking to earn some extra money out of creative passion.

#8. Candy Making 

If you are passionate about making various types of chocolates, you can start this business from home. Homemade candies are delicious and healthy too. Therefore, people always love to buy homemade candy for their children.

#9. Carpet Manufacturing

If you want to start a small manufacturing business in the textile industry in India, then you can consider carpet making. Basically, there are several carpet-making machines you can use for producing beautiful carpets. The business demands small investment and strategic planning.

#10. Carton Box Manufacturing

Carton boxes are very important materials in the packaging industry. Generally, this type of box is used as outer packaging to keep the material safe during a time of storage and transportation. You can start a cartoon box manufacturing unit on a small scale with a small capital investment.

#11. Cashew Processing

People can’t consume raw cashew. Therefore, raw cashew needs proper processing and packaging for human consumption. If you live in a cashew-growing area, you can start a cashew-processing business of your own. Additionally, the product has good export potential in the international market.

#12. Ceramic Tiles Manufacturing

Ceramic tiles are construction materials. Basically, ceramic tiles are used for making interior floors more attractive and glossy. You can start a small-scale ceramic tile manufacturing unit with moderate capital investment. However, the business demands adequate marketing and distribution activity to get long-term success.

#13. Chalk Making

Chalks are widely used in schools in India. Additionally, these are essential items in the tailoring industry. Furthermore, the chalk-making process is very simple and any individual can start this business from home.

#14. Coconut Oil Production

Coconut oil is one of the most important cooking oils. Additionally, this is one of the most important ingredients in the soap, perfumery, and pharmaceutical industries. If you live in a coconut-growing area, you can start a coconut oil production business with moderate capital investment. And you can sell the product both in the retail and distribution market.

#15. Cookie Making

Most people prefer cookies. And it is always better if anyone can purchase delicious and good quality cookies from home. If you are a passionate cookie maker and want to start a cookie business with a small capital investment, this business is just perfect for you.

#16. Cotton Buds Making

Cotton buds are very useful household items in India. are short spindles with one or both ends coated with absorbent cotton padding. With a simple small machine, you can start cotton buds manufacturing business.

#17. Crafts Making

If you have a creative mind and you enjoy crafting, then the crafts-making business is just perfect for you. Additionally, with some simple hand tools, you can start this business. However, you must have the skill of creating craft items.

#18. Cupcake Making

Cupcake is one of the most popular bakery items. And almost every age group of people love this cake. Any individual can start a home-based cupcake-making business. Additionally, a home-based business demands a small startup capital.

#19. Dal Milling

Dal milling or pulse processing is a profitable business in India. However, it depends on the availability of the raw materials at the nearby factory unit. The business is comparatively easy to start. Additionally, you can start the business with moderate startup capital investment.

#20. Designer Bindi Making

Designer bindi is an essential beauty product for the women population. And there are various types of bindis available in the market. Designer bindi-making business is profitable. And any individual can start this business from home with a very small capital investment.

#21. Designer Blouse Making

A blouse is an essential readymade garment for women in India. Generally, this apparel was popular in the Asia Pacific region in ancient times. And women used to wear blouses as daily wear. Nowadays, with the changing fashion style, the designer blouse is increasingly popular globally.

#22. Detergent Powder Manufacturing

Detergent powder is one of the most popular FMCG items in India. The per capita consumption of detergent powder is much higher in developed countries than in developing countries. Additionally, the manufacturing process only involves careful grinding, mixing, and packaging.

#23. Disposable Cup Glass Making

Disposable cups, glasses, saucers, and plates are gaining popularity rapidly in almost all cities, towns, and rural areas in India. Due to their disposable nature, these are very useful for catering businesses also. With a simple machine, you can start this business from home. Additionally, the manufacturing business is simple.

#24. Envelope Making

The envelope is one of the most important paper stationery items. It is used widely in schools, colleges, universities, and several Govt. and private offices. The envelope manufacturing process is simple. And you can start the manufacturing business from home.

#25. Exercise Book Making

An exercise book is another important item for school students. The manufacturing process is simple. And with simple equipment and tools, you can start an exercise book manufacturing business from home. Also, the business demands very small startup capital investment.

#26. Footwear Manufacturing

Ladies, gents, and kid’s footwear has seen huge growth in the last few years in India. Generally, leather footwear occupies the maximum market in the footwear segments. You can produce different types of footwear at home with simple equipment and tools. However, you will need to concentrate on marketing immensely if you want to establish your own footwear brand.

#27. Furniture Manufacturing

The furniture market is huge in India. Broadly there are two different types of furniture available in the market. These are interior furniture and patio furniture. Additionally, the furniture comes with different types of materials. These are wood, iron, plastic, cane, bamboo, plywood, etc. You can start a small-scale furniture manufacturing business with moderate capital investment.

#28. Gem Clip Making

Gem clip is an essential item for school students and in offices. Basically, the gem clip helps to keep a bunch of paper organized. The gem clip-making process is very simple. And with a simple automatic machine, you can start a gem clip manufacturing business of your own.

#29. Groundnut Oil Production

Groundnut oil is one of the most popular cooking oils globally. The manufacturing business is highly profitable. Also, the product has great export potential. However, the business demands substantial capital investment. You will need to invest in the machinery, raw materials, and resources for initiating this business.

#30. Jam Jelly Making

Jam and jelly, both are very healthy food. Additionally, the manufacturing operation demands a small place. Furthermore, you can start jam jelly making in your kitchen with your kitchen utensils. And as your business grew, you can scale up at any moment in time.

#31. Jewellery Making

Jewellery is a traditionally profitable industry in India. And there are thousands of different types of jewellery we can find in the market. Generally, artificial, costumes and semi-precious jewellery are the most popular in the wide group of the population.

#32. Jute Bag Making

Jute fiber is an eco-friendly item. And you can produce different types of bags with jute. Additionally, you can decorate those bags with embroidery, mirrorwork, or beads. You just need to have a good quality sewing machine.

#33. Leather Belt Making

Men and women both use leather belts nowadays. And the demand for good quality leather belts is increasing very fast. Additionally, with some simple hand tools and equipment, you can start this business from home. However, you must procure good quality leather to produce good quality belts.

#34. LED Light Manufacturing

The popularity of LED lights is increasing very fast in India. Basically, LED provides bright and clear light with less electricity consumption. You can start the LED light manufacturing business on a small-scale basis with moderate capital investment. Additionally, you will need to concentrate on the marketing and distribution of the finished products.

#35. Nails, Nuts and Bolts Manufacturing

Actually, nuts and bolts are a specific type of industrial fasteners. These are used in various products, machines, structures, etc. Actually, nut bolts manufacturing operation comes under the light engineering segment. You can start the business on a small-scale basis with simple machinery.

#36. Naphthalene Ball Making

Generally, naphthalene balls are used as a household preservative for woollen clothes and as a deodorant tablet for toilets, urinals, bathrooms, etc. It is a consumable item and it has maximum use in the city areas. You can start this business on a small-scale basis even from home. The manufacturing operation demands simple machinery.

#37. Padlocks & Keys Manufacturing

Padlocks and keys are essential hardware items. Additionally, these items come in different sizes, designs, and patterns. The manufacturing process is not complex. Additionally, you can start the unit with a 500 Sq Ft space. The business demands a very small startup capital investment.

#38. Paper Cup Making

The paper cup is a healthier alternative to plastic cups. Additionally, the disposable nature has made this item more popular.  Generally, you can produce the paper cup with paper and often lined with plastic to prevent liquid leakage or soaking through the paper. In addition, you can also use recycled paper.

#39. Pet Bottles Manufacturing

Pet bottles are used widely at present in India. Apart from household use, this type of bottle is very popular for liquid packaging. Therefore, the food, pharmaceuticals, beauty, and chemical industries are the major industrial consumers of pet bottles. You can start a pet bottle manufacturing unit with a small startup capital investment.

#40. Phenyl Making

Basically, phenyl falls under the hygienic product industry. Phenyl is one of the most important items in domestic hygiene. Additionally, it has intensive use in offices, hospitals, nursing homes, polyclinics, shopping malls, etc. The manufacturing process is not complex. And you can start phenyl making business with a small capital investment.

#41. Potato Chips Making

Currently, potato chips hold the first position in the global ready-to-eat snacks market. It is popular in every age group of people. It is a multi-million dollar industry nowadays. You can start the business in India with a small investment and scale-up is possible at any moment in time.

#42. Rubber Band Making

Rubber bands are very useful items in everyday life. Sometimes we use rubber bands as hair bands. And sometimes we use the bands widely in agriculture, automobile, packaging industry, and newspaper industry. You can start this business at home with very low capital investment.

#43. Rubber Eraser Making

A rubber eraser is an essential school stationery item. Additionally, it has several uses in different fields. Basically, you can produce a rubber eraser from natural rubber.

#43. Rubber Stamp Making

You can start this manufacturing business in India in two ways. One is a retail location operation and another is a home-based operation. Actually, the polymer rubber stamp is now very popular for official use. Additionally, pre-inked stamps are getting immense popularity these days. Any individual can start a business with a small startup capital investment.

#44. Safety Pin Making

Basically, a safety pin is a different type of pin that includes a simple spring mechanism and a clasp. Actually, people use it for fastening pieces of fabric or clothing together. Also, women use the safety pin as an accessory in jewellery, like earrings, chains, and wristbands.

#45. Slipper Making

You can produce different types of colourful slippers from colourful rubber sheets. Slippers are household consumable items. And people from every age group use slippers. A small-scale slipper manufacturing business is profitable. Additionally, you can start the business at home also.

#46. Soap Making

You can start soap making business with some simple equipment at home. Homemade soaps have a great demand in the market. And the required raw materials are easily available in the market. Generally, there are two different types of soap-making processes you can opt for.

#47. Soft Toys Making

The demand for soft toys has grown exponentially in the last few years in India. And not only the kids, these are popular among the young and teenage crowd also. You can start soft toys making business from home. And if you don’t know the process, you learn it through offline or online tutorials.

#48. Spice Powder Making

You can start the spice grinding and packaging business on a small-scale basis. Depending upon your investment capacity, you can initiate the business on a small, medium, and large-scale basis. Spice is an important cooking ingredient.

Broadly, there are two different types of spices you can find in India. These are individual spice powders like chilly, cumin, turmeric, and mixed powders like chicken masala, curry masala, etc.

#49. Trampoline Production

you can use a wide range of machines and tools to achieve different trampoline design and manufacturing requirements. Generally, the manufacturing operation includes cutting, circling, punching, frame shrinking, etc. You can start a trampoline production business on a small or large-scale basis.

#50. Umbrella Assembling

Umbrellas are very commonly and extensively used by people to protect against the sun and rain. The demand for umbrellas depends on different climatic conditions, increases in population, a general increase in income, and a change in social outlook.

There are different types of umbrellas such as straight (ordinary) and folding umbrellas used by gents, ladies, and children. You can assemble and sell different types of umbrellas.

#51. Vermicompost Production

If gardening is your hobby, and you have a backyard, you can start this agro-manufacturing business in India. And compost fertilizer is considered organic manure. And the process of vermicompost production is simple. However, you must have some skills and experience in starting the business.

#52. Woodworking

Woodworking is comparatively an easy business to start with a small startup capital investment. If you can initiate the business at home, then the only investment aspects are some hand tools and wood as raw materials.

#53. Baking Powder Making

Baking powder is an essential item in cooking and baking. From a small-scale unit, you can produce baking powder. The business is highly profitable in India. Also, the product has good domestic market demand. Also, you can produce other different products from the same unit to enhance profitability.

#54. Beaten Rice (Chira) Production

Beaten rice is popular as Chira. Most of the Indian population consumes it as a staple breakfast diet. It is a low-cost wholesome food and has good nutritional value. People consume it in different forms viz. raw, fried, with curd, and therefore has mass appeal.

#55. Carbonated Soft Drinks Production

Flavoured carbonated soft drinks have got huge popularity in our country. This type of water drink consists of water, carbon dioxide, colour, additives, and preservatives. In a tropical country like India, which has oppressive summers, there is a substantial market for aerated soft drinks.

#56. Cocoa Processing

Cocoa powder is an essential ingredient in the food processing industry. Therefore, the product has both domestic and industrial demand. Actually, raw cocoa is not a consumable item. So, it needs proper processing to get cocoa beans and cocoa powder.

#57. Cornflakes Manufacturing

Cornflakes are a nutritious and healthy food. Generally, the Indian population consumes cornflakes as breakfast. Maize is the main raw material in the corn flakes-making project. The manufacturing process is simple. And the project is financially profitable.

#58. Custard Powder Manufacturing

As more Asian population is embracing western food trends, the demand for custard powder-based recipes is escalating in the Asia Pacific region. You can find a lot of established custard brands in the markets. It is one most potential, profitable, and feasible products for the domestic and export market. Hence there is enough scope for a custard powder manufacturing plant with a suitable capacity.

#59. Flour Mill

Flour milling is a traditional business in India. From a flour mill, you can produce atta, maida, suji, besan or gram flour, Sattu, etc. And these are all important food items in our country. With a very small budget, you can initiate a flour milling business even to produce a single product.

#60. Ginger Garlic Paste Making

Ginger garlic paste is a ready-to-cook cooking ingredient. The product is getting immensely popular in urban and suburban cities. As more and more couples are in the outdoor job, they prefer to use a readymade spice mix instead of raw items. The ginger garlic paste-making business is easy to start. And a small-scale operation needs small capital investment.

Frequently Asked Questions

What are the best manufacturing business ideas under Rs. 1 lakh?

Here we list down the 10 most profitable small manufacturing ideas under Rs. 1 Lakh in India.

• Candle Making
• Chocolate Making
• Pickles Making
• Paper Cup Making
• Bindi Manufacturing
• Toy Making
• Chalk Making
• Designer Lace Making
• Blouse Hook Making
• Exercise Book Manufacturing

What are the best small manufacturing business ideas under Rs. 5 Lakhs?

Below find the best small manufacturing businesses you can start under Rs 5 Lakhs in India:

• Agarbatti Making
• Bread Making
• Soap Making
• Detergent Powder Manufacturing
• Cashew Processing
• Ice Cream Cone Making
• Jute Bag Making
• Nut Bolt Making
• Papad Making
• Pollution Mask Manufacturing

Is Manufacturing Business Profitable?

Small-scale product manufacturing is the backbone of the Indian business ecosystem. It contributes a big share of the GDP in the Indian economy as a whole.

Product manufacturing is an evergreen business globally. And this is one of the most lucrative sectors revenue-wise. However, starting a manufacturing company demands startup capital investment initially. Capital investment requires machinery, equipment, raw materials, staffing, and marketing purposes.