written by Khatabook | February 15, 2022

Best Eco-Friendly Business Ideas in India

When we use the term eco-friendly, it means products that cause no harm to the environment. It generally refers to extensible use of natural resources but most effectively and efficiently. Those who are planning to open an eco-friendly business should understand which products are eco-friendly and which are not.

The products that do not harm the environment in their production, use, and disposal, are called eco-friendly products. Generally, when in use, these products help conserve energy, minimise carbon footprint or the emission of greenhouse gases, and do not lead to substantial toxicity or pollution to the environment. The products which are manufactured are of organic material and use energy effectively. It is very important for businesses to develop sustainable business ideas, and the companies applying for CSR should think about environment-friendly business ideas. To go for green business ideas in India, one needs to go through several websites that teach eco-friendly startups and deal with tech skills. 

Did you know?

India plans to increase its forest cover to 5 million hectares under the Green India Mission.

What do you mean by eco-friendly business?

  • Environmental friendly is a different technique of production which is not dangerous to the environment.
  • Eco-friendly businesses are also known as sustainable or green businesses, supporting renewable resources.
  • Organic resources are used in this business to attract customers.
  • A pollution-free nation is one of the significant aims of the eco-friendly business.

Sustainable Business Ideas You Can Explore

There are a few sustainable business ideas that can give huge profit, which include-

  1. Eco-friendly trading
  2. Refilling business
  3. Online organic catering
  4. Cycle tyres treading
  5. Shops on secondhand
  6. Economic consultancy services 
  7. Greenhouse effects services
  8. 3Rs services (Recycle, Reuse, Reduce)
  9. Plantation 
  10. Solar panel installation systems
  11. Pollution control systems
  12. Wooden furniture 
  13. Handicraft business
  14. Organic and beauty salons 
  15. Natural products business

Also Read: Best Small Business Ideas for Rural Areas, Villages, Small Towns in India

Opening an eco-friendly business can help increase the country's economy and keep a regular check on the ecosystem. The quick adoption of eco-friendly products and eco-friendly startups in India can help achieve this objective. 

Eco-Friendly Business Ideas in India

1. Solar Energy Trade

This is the most efficient and excellent way to reduce carbon footprint by using solar energy in several factories and manufacturing units. India has made great efforts to reduce its carbon footprint by introducing electronic vehicles (EV). As of now, the Delhi government has taken this initiative in working towards EVs. 

Solar panel consultants and traders have developed a solar installation and manufacturing system and give tax benefits to those using eco-friendly measures. India has reportedly installed 9.3 GW of Solar Capacity power which is expected to exceed more by the upcoming year, that is, 2023. This sector is receiving huge government support. The use of solar energy is an effective way to reduce pollution, and hence, this will be adopted as a misty culture in the upcoming parts of the world. Sooner or later, this will give immense growth to the budget period while the investment is less than the biofuel plant, which is ₹1 lakhs.

2. Biofuel Plant

To set up a biofuel plant, many factors depend upon the government because they need to check the availability and resources of biofuel. It has become the most effective business startup in India and the outskirts of India. Globally, this business is rapidly booming. However, it requires huge investment as well as government support. The monopoly in the market leads to very few manufacturing units. The investment is about ₹20 lakhs to ₹2 crores.

3. Rain Water Harvesting Projects

The scarcity of drinking water is becoming a major issue day by day, giving rise to underground water use. This business startup is considered to be the most economical and eco-friendly opportunity. This method is considered the best to work using rainwater. The person interested in this project can receive the Science and Environment Centre license. The investment here is also less, that is, ₹1 lakh

4. Organic Store Business

It is considered to be the happening eco-friendly business one could have. The store can have all the sustainable items, even organic groceries. Nowadays, people are into healthy diets and are more inclined towards the gym. Therefore, this business idea is top-notch, be it eatables, personal care products or house decor, office decor, footwear etc. The environment-friendly business can support local businesses catering to the development of the economy as a whole. Hence, organic stores will now emerge as the healthiest way of commencing a new business. The minimum investment required is ₹5-7 lakhs. At the same time, the growth is expected to be 25% in the upcoming years.

5. Recycled items

The recycling market is growing as people become aware of decreasing their carbon footprint. Therefore, starting an environment-friendly business of recycling products is a wise decision. You can recycle non-ferrous scrap, which is aluminium metal and discarded electronic products. Here the investment is considerably low while the market approaches are high. The investment will depend upon the product and the recycling process. Every item in our house is recyclable, be it clothes, books, shoes, etc. Some recycling products generate a huge amount of smoke and disinfectant, while some are pure. The recycling business leads the major point on the machinery investment and manufacturing dealings.

6. Eco-friendly paper bags

This planet needs oxygen, and for that case, it is essential for humans not to use polythene. Polythene contains polytheism, a very dangerous chemical to be found in polythene. Therefore it is essential for today's generation to go forward with paper bags. Eco-friendly paper bags will give immense culture to India in protecting the earth. Plastic, when burnt, produces smoke and smog that becomes very harmful and poisonous to humans as well as to animals and birds. Therefore manufacturing eco-friendly paper bags is the best eco-friendly initiative to stop the cutting down trees and hence ever durable more than plastic bags. Recycled paper or jute can be used in the factory for production. The investment in this business is considerably low, that is, ₹50000 approx and if it is a huge plant then ₹8 lakhs approx

7. Eco-friendly Furniture Business

Old furniture can now be recycled and reused into a piece of useful furniture or a tool. This business is lucrative in the global market and doesn't require a huge planting area or manufacturing unit, as this can be done in about 500-800 sq. ft. Starting an eco-friendly furniture business is an excellent choice since the furniture will never go out of the league. The old and discarded furniture can be made eco-friendly in the most trendy way leading to a fruitful business.

8. Industry composting business

Composting business involves working with kitchen wastes. This is considered the most practical and effective way of doing business. There is no huge investment required in this business, for this can be done in the backyards of the house garden. Composting can be done of kitchen waste vegetables, food, home care products etc. Therefore, there is lucrative scope in various sectors that can help you develop your business quickly. 

9. Green architecture business

Green architecture is incorporated into the buildings or houses in which we live. There is always hype in building a great house. Green architecture is a boon since it fuses sustainability and energy sources to minimise the negative impact of construction. This business will globally expand because it is cost-effective. With this eco-friendly business of green architecture, developers can use green insulation technologies or modern energy-saving electricity technologies. Therefore, this business has enormous scope, and you can garner adequate profitability. 

Also Read: Key Business Ideas to Start Part Time


In the 21st century if you are starting a business, engaging in an  eco-friendly business is an excellent idea. This is because with an eco-friendly business, you can support renewable resources and also reduce the use of fossil fuels. The impact of starting such a business is immense for the environment as well as for the country’s green economy. This article highlights some of the lucrative green business ideas. Thus, you can start with one idea or combine these ideas to establish your eco-friendly startup in India.

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Q: Is an eco-friendly business start-up expensive?


The eco-friendly startup is not expensive, however it depends upon business to business. If it is a biofuel plant business, it requires huge investment, while recycling and rainwater harvesting require minimum investment. 

Q: What is the eco mark label on eco-friendly products?


Eco mark label on the eco-friendly products is mandatory, which depicts evidence about the purity of the product and the quality circumference. 

Q: What principles do eco-friendly businesses follow?


Principles that eco-friendly businesses follow are:- 

These businesses work on conservation and securing the mother earth. The main key factor of these businesses is not to spread pollution. They should use biodegradable waste and also release pure residues. Furthermore, these businesses should support local standby businesses and help them develop their products and let them grow. 

Q: Name the most profitable recycling businesses.


Recycling plastics, construction wastes, paper, or aluminium cans can be considered the most profitable recycling businesses.

Q: How can one start an eco-friendly business?


One should first understand the basic need of the project, and then they can work on it. 

  • Firstly you must be a graduate in any field, be it science, commerce or arts. 
  • Secondly, you need to do internships in Environmental consultancy firms. 
  • Thirdly, work experience is mandatory. 
  • Fourthly, you can attain a masters degree.
  • Lastly, they can apply for jobs.

Q: Name some successful sectors for starting eco-friendly businesses?


Some of the business sectors where you can start an eco-friendly business are manufacturing electric vehicles, organic farming, fashion designing, etc. In these sectors, you can incorporate sustainable or reusable resources to establish a proper eco-friendly businesses.

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