written by Khatabook | September 9, 2021


Table of content

Table of content

Most Profitable Manufacturing Business to Start in India

India's manufacturing sector is considered a glimmer of hope that can help the country become a developed nation with a booming economy. With lucrative manufacturing business ideas, you can make a mark in this industry as well. Indeed, manufacturing is one of the few industries in India that is experiencing significant growth despite the COVID-19 outbreak. The Government of India has announced many programs for the sector to stimulate manufacturing in the country, the most noteworthy of which is the Production-Linked Incentive (PLI) Scheme. Under this scheme, the Government gives production-linked incentives to manufacturing companies in sectors such as electronics, pharma, textile, food processing, chemicals, and so on, valued at INR 2 lakh crores. As a result, many new entrepreneurs have entered the manufacturing sector, while established ones have expanded into other business sectors.

So, if you are interested in starting a small scale manufacturing business in India, we have got your back. In this article, we have compiled a list of manufacturing business ideas that are promising and profitable. 

Profitable Manufacturing Business Ideas 

Here are some popular manufacturing business ideas in India that one can start and have enormous potential:

  • Mobile Accessories Manufacturing

India is the world's second-largest mobile market after China. With 158 million sales in 2019, India has surpassed the United States. From two production facilities in 2014 to hundreds of manufacturing units today, Indian mobile manufacturing has gone a long way. Today, India is home to some of the world's largest mobile manufacturing brands and contract manufacturers, including Samsung, Xiaomi, Micromax, and more. So, one of the most profitable manufacturing businesses is to start mobile accessories manufacturing to appeal to a huge mobile customer base. Earphones, chargers, mobile covers, screen guards, dongles, batteries, memory cards, power banks, Bluetooth speakers, and others are examples of such mobile accessories.

  • Leather Products Manufacturing

Leather products manufacturing is currently one of India's fastest expanding industries. It accounts for 12.93% of global leather production. With the Indian leather sector at 328 billion Indian rupees in export, this industry will likely grow in the coming years. Manufacturing leather footwear and garments have many potentials, both for the domestic market and for worldwide export. Making leather items requires a significant investment and specialised technology, a raw material inventory, and a warehouse to keep the final product. Therefore, it can be categorised under new manufacturing business ideas with high investment.

The leather industry is divided into several segments, including tanning and finishing, leather apparel, footwear and footwear components, leather items such as harnesses, and more. A leather manufacturing idea can be developed into a profitable venture on  small and medium scale business. 

Also Read: Small Scale Business Ideas with Low Investment

  • Garment Manufacturing Business

The textile and clothing industry generates 4% of India's GDP and accounts for 15% of the country's export revenues. India has an advantage over other countries because of its value chain for textile production, which extends from the availability of natural fibre to the production of yarn, fabric, and garments. The increased desire for "Make in India" apparel that reflects India's heritage creates new opportunities in the garment manufacturing sector.

One option is to set up a unit for skilled embroiderers and zardozi artists who require low investment.

The other option is to set up a manufacturing unit of readymade garments. People choose readymade clothes due to the high cost of tailoring and the time it takes to make handmade clothes; also, handmade clothes are not suitable for the fusion trend. As a result, prefabricated clothes are chosen in urban and suburban areas, resulting in a significant market demand for ready-made garments. The demand for the garments is great in the domestic market and in the export sector, which has seen a tremendous rise in recent years, therefore making it one of the most profitable manufacturing business ideas.

  • Furniture Manufacturing 

Making various wooden furniture items, carpentry, carving, and wood-turning is part of the furniture business. Gujarat, Punjab, Kashmir, Uttar Pradesh, and Kerala have traditionally contributed significantly to the Indian furniture industry. It is one of the most lucrative manufacturing businesses in India.

Some of the factors for India's expanding need for the woodworking sector are:

  • The government supports all indigenous and traditional forms of furniture and other woodwork goods for sale in India and abroad through the ‘Make in India' program.
  • Whether it is hospitality, retail, tourism, healthcare, or the real estate sector, all sectors that are prospective clients of the woodworking industry are increasing rapidly. 
  • Foreign Direct Investment (FDI) friendly investment regulations and plans have attracted significant foreign investment in the woodworking industry.

The Indian woodworking industry is one of the fastest-growing sectors in India, contributing to the country's economic growth. The woodworking sector is simple to get started in and does not require large investments. To manufacture woodworking items, you must establish a manufacturing unit, purchase equipment and machinery, and hire qualified workers. It is also important to btain relevant permits and registrations depending on the number of people employed at the production unit, the size of the business, and the type of business.

  • Disposable Cutlery Manufacturing

In recent years, demand for fast-food restaurants and takeout has increased dramatically. The same is true for disposable cutlery. To improve their meal delivery standards, these restaurants prefer using high-quality yet cost-effective disposable cutlery such as paper napkins, spoons, cups, forks, plates, and bowls. As a result, investing and planning in disposable cutlery is one of the efficient manufacturing business ideas in India that will be profitable. To start a disposable cutlery manufacturing company, you will need a location to set up the manufacturing plant with a good ventilation system and power backup, a team to supervise the production, and a sales cycle to import or export. 

  • Fashion or Jewellery Manufacturing 

Jewellery is regarded as one of the most profitable manufacturing businesses in India. People are increasingly interested in handcrafted fashion or valuable jewellery with customised or one-of-a-kind designs. If you have a knack for jewellery design, you can start a jewellery designing and manufacturing company. You can promote it with a planned marketing approach for optimum returns and higher earnings.

Fashion jewellery is a high-margin industry, with margins ranging from 30 to 40%. In urban India, the perspective has shifted from jewellery as an investment to an accessory for various events. The convenience of purchasing matching pieces for different ensembles and safety concerns are boosting the acceptance of fashion jewellery among Indian women in particular.

If you want to start a precious jewellery manufacturing company, you will require a high-quality raw material source for fashion jewellery pieces. To start designer jewellery manufacturing, you will need a reliable and certified dealer of precious metals such as gold, silver, and platinum and precious or semi-precious stones such as diamonds, topaz, and pearls, sapphire, quartz, and others.

  • Ready to cook (RTC)/Ready to eat (RTE) Food Manufacturing

Ready-to-cook foods are those that require a little preparation before consumption. And ready-to-eat foods are those that are fully cooked for ingestion. With individuals getting busier in their day-to-day tasks, these cuisines have become the norm in the country. Demand for these meals is being driven by an increase in the working population and income levels in metropolitan regions. These foods have grown immensely popular because they suit the unique needs of convenience, nutritional adequacy, shelf stability, storage, and distribution to the centres.

The RTE & RTC foods category is possibly the fastest-growing segment in the Indian food manufacturing industry, therefore, falls among relevant manufacturing business ideas. India also has one of the world's largest RTE & RTC food marketplaces. As a result, manufacturing RTE and RTC foods is a possible food business idea for aspiring entrepreneurs in India.

  • Toy Manufacturing

The current market value of the Indian toy sector is in the range of INR 5000-6000 crores. It accounts for less than 1% of the worldwide toy business. The Indian toy sector meets only 25% of domestic toy demand. To suit domestic demand, India mostly imports from China. However, after the prime minister's call to develop the country's toy industry, toy manufacture has moved to the central stage in India. Therefore, these new business ideas in India in manufacturing have potential and scope for growth and development.

Moreover, several state governments are taking steps to foster toy manufacturing clusters in their respective states. Toy manufacturing has enormous potential in India, given the size of the home market. The Indian toy market is rising at a compound annual growth rate (CAGR) of 13.9%. 

  • LED Light Manufacturing

LED lighting has grown in popularity in the country during the last few years. It is due to their lower energy use and longer lifespan when compared to traditional lights. LED products are in high demand in both the local and worldwide markets. Over the next few years, the LED lighting industry in India would grow exponentially. 

The LED light manufacturing business has a huge potential. While LED lighting is widely used in metropolitan markets, rural areas are mostly untouched. As a result, India's rural markets present enormous commercial prospects for the country's LED light makers.

  • Medical Devices Manufacturing 

With the presence of MNCs and a considerable number of SMEs, medical device manufacturing is one of India's fastest-growing categories. Therefore, it is one of the most profitable manufacturing businesses to start. By 2025, the medical device market will be worth  Rs. 70,490 crore. The Government of India's national health scheme, Ayushman Bharat, assists in improving diagnostic facilities in the country, thus increasing the demand for medical gadgets.

Under the Production-Linked Incentive (PLI) scheme, the Government has proposed incentives of up to 5% for the next seven years for medical device production in the country.

  • Candle Manufacturing 

In the Indian market, demand for various candles is increasing by leaps and bounds, therefore, it can be considered one of the  best manufacturing business. People nowadays like scented candles, figurines, textured, aesthetic, treatment, customised, and other types of candles for various occasions and festivals. You should use a rigorous and detailed approach to research and market surveying for better results. You can start a candle manufacturing business from your home as a small-scale business as well and in time, grow its demand globally. You will need reliable raw material suppliers, a well-ventilated area to make candles, and a focused product range to start a candle manufacturing company. As a small scale manufacturing business, you  can get started with a small initial investment of INR 10,000-20,000.

Also Read: Best Business Opportunity in the World

Some Final Thoughts

The manufacturing sector accounts for approximately 16% to 19% of the country's GDP. The goal is to increase the manufacturing sector's contribution to the Indian economy up to 25% in the upcoming years. Throughout India, many Governmental efforts are being implemented to support manufacturing business concepts in various sectors. As a result, the breadth o f the manufacturing business in India is expanding. This is an excellent time to venture into this promising business by implementing suitable manufacturing business ideas. It is important to  remember that any new business concept demands a comprehensive and planned approach to succeed. 

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Q: How long does it take to begin a manufacturing business in India?


Establishing a business, whether it is small-scale or large-scale, requires extensive research and considerable hard work, labour, and patience. There is no set time frame within which a manufacturing business can thrive and expand profitably. The time it takes to create a manufacturing business in India is determined by the industry sector, the target audience, and the effort involved in successive stages, such as product manufacture.

Q: What are some examples of small manufacturing businesses in India?


These are some of the small manufacturing businesses for the Indian market:

  • Paper Manufacturing-Envelopes, Greeting cards, Notebooks, Invitation cards, Handmade cards for crafts/origami, files, etc.
  • Food Manufacturing- Bakery, Pulses Milling and processing, Dairy products, customised chocolates, and oil making.
  • Fashion accessories-Costume jewellery, Cloth bags, Handbags, Jute bags, Hair accessories, etc.

Q: Is high capital or investment required for starting a manufacturing business in India?


The amount of money invested and budgeted relies on various elements, including the scope, target audience, marketing activities, and raw material costs required to start a manufacturing business in India. However, you can start a small-scale manufacturing company from home and grow it as the demand and needs dictate. To start a small-scale manufacturing business like candle making, you may not require a significant investment at all.

Q: What is the scope of the manufacturing business in India?


The manufacturing business in India has a lot of potential. The country is well-known for its abundant natural resources, raw materials, high-quality food products, and easy commercial and trade routes. Furthermore, India has excellent connectivity with other countries, making it one of the most sought-after markets in the manufacturing industry. The Indian Government also emphasises the “Make in India” concept and encourages new start-ups and entrepreneurs to build manufacturing company concepts in India.

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