Small Scale Industries in India [Top Small Scale Industries]

Table of Contents

Best & Profitable Small Scale Industries In India

1. Chocolates

2. Paper Napkins And Toilet Rolls

3. Sanitary Napkins

4. Candle Making

5. Phenyl Making

6. Disposable Cups And Plates

7. Excise Notebooks

8. Spices

9. Soaps And Oils

10. Camphor And Incense Sticks

11. Chips And Biscuits

12. Papads And Fritters

13. Simple Medical Requirements

14. Cottage Cheese

Best & Profitable Small Scale Industries In India

Rich in natural resources as well as a large workforce, India is quite a favourable destination for entrepreneurs. When we look into how a large business develops, it is usually the expansion of a small and singular space. For example, Mark Zuckerberg started Facebook in his dormitory room! However, capital and networking often prove to be major path blocks in the growth of many small businesses. While most entrepreneurial ventures begin with high hopes, funding acts as a massive deterrent to success.

The Micro, Small & Medium Enterprises Development Act of 2006 defines and categorises small scale industries as MSMEs. These categories are made based on investment in plant & machinery in case of manufacturing industries and based on investment in equipment in case of service sector industries. Today, the government encourages many of these small industries through subsidies and funding. These small scale industries have an indispensable role in the secondary sector of India owing to the products that they produce.

The best advantage of small manufacturing businesses is that they can be started at home itself or the maximum, a small rented space. The capital investment is meagre, and it does not involve a lot of expensive machinery or equipment. Here is a list of the top small scale industries in India:

1. Chocolates

Homemade chocolates have always been a hot favourite amongst people of all ages. A large number of small industries, especially in hill station regions produce a variety of chocolates. Mintel, the market intelligence industry, estimated that the chocolate market in India would be around Rs172 billion by the end of 2020. With the increase in per capita income, chocolate is no longer an item of luxury or speciality but is consumed daily by the average Indian.

2. Paper Napkins And Toilet Rolls

Paper napkins and toilet rolls are being increasingly used in food, hospitality and entertainment- three of the fastest growing sectors in India. A paper napkin manufacturing unit started with an investment of 10 lakhs can generate about Rs. 1 crore in annual sales turnover and a profit of about 5-8 lakhs after all expenditures. These industries usually require a VAT registration apart from registering the business.

3. Sanitary Napkins

Sanitary Napkins is one of the most popular options among NGO-run small scale industries. It provides a two-pronged benefit in many rural areas by providing employment to women as well as creating awareness about the use of safe and clean menstrual wear. These industries are also gaining attention on the silver screen through the release of movies such as Padman. The set up of these industries would require around 3- 35 lakhs based on the unit’s size, machinery and number of employees.

4. Candle Making

The candle making industry requires just around Rs.50000 as a capital investment. It supports many women by creating employment opportunities in rural areas. Lights and candles form an integral part of many celebrations in India ranging from Diwali to Christmas. The candle making industry in India is growing at a fast pace in both production as well as diversification. Candles are no longer restricted to a straight cylindrical shape, and most industries produce a range of scented candles.

5. Phenyl Making

Phenyl is a top-rated cleaning agent used extensively in homes, hospitals, restaurants and factories. Though the market has seen the introduction of many products as alternatives, phenyl continues to be the most popularly used item.

6. Disposable Cups And Plates

The India paper cup market reached a volume of 265 billion units in 2020 and is further expected to grow at a CAGR of 2% between 2021 and 2026. It is estimated that small scale industry would reach a volume of about 295 billion units by 2026. This growth can be primarily attributed to the COVI-19 pandemic, as well as an increase in the disposable income of the average Indian.

7. Excise Notebooks

The usage of excise notebooks has only increased over the years. The market has witnessed tremendous growth between financial years 2010-2015 with a double-digit CAGR in terms of revenue.

8. Spices

Indian food relies heavily on a variety of spices. Hence, the demand for spices will always be high. However, the spice market in India is so huge that it caters to international needs as well. In the financial year 2020, spices worth US$ 3.65 billion were exported from India. The industry is highly profitable growing at a rate of around 40000 crores annually.

9. Soaps And Oils

With an increasing number of people opting for organic products, small scale industries producing soaps and oils are thriving very well. There is a tremendous demand for cold-pressed soaps and oils today, due to a substantial shift towards a chemical-free lifestyle. Furthermore, many of these small industries offer a variety of scents, and some even offer customised products.

10. Camphor And Incense Sticks

India is the largest producer of incense sticks in the world and exports the products to several other countries. The agarbatti or incense stick market is expected to grow with a CAGR of above 8% in terms of volume for the next couple of years. There is also an increasing demand for pharma grade camphor among Indians due to a rising pattern of self-medication. However, 98% of the camphor used in India is for religious purposes.

11. Chips And Biscuits

Banana and potato chips are some of the most commonly consumed snacks in India. Currently, suburbs and small towns are also becoming strong markets for chips production. The overall size of the snack food market is estimated to be around Rs 45 to Rs 50 billion, and the market is reported to be growing at 7 to 8 % annually. The production of snacks can be divided into two categories: traditional recipes such as bhujia and chanachur, and global recipes such as chips.

12. Papads And Fritters

Papads and Fritters producing industries are extremely lucrative initiatives for aspiring entrepreneurs in South Asia, particularly India. The shelf life of papad is 2.5 to 3 months, and you can produce the products in a variety of flavours. The large buyers are usually hostels, hotels and restaurants. The papad market in India amounts to around 1000 crores.

13. Simple Medical Requirements

Surgical medical equipment is produced in high-grade setups using skilled medical engineers and world-class equipment. However, most of the simple medical requirements, such as cotton swabs and surgical gloves, are made in small scale industries. These industries are monitored and routine-checked for quality by the Food and Drug Administration. You cannot produce or distribute these medical requirements without clearance from the FDA.

14. Cottage Cheese

India has no shortage of dairy products ranging from milk and curd to processed products like paneer. With increasing awareness of the health benefits of quality dairy products, there is a tremendous demand for low-fat dairy products. Cottage Cheese or commonly known as Paneer is one of the most commonly used dairy products in dishes, especially in North India.

The handloom industry is yet another large chain of small scale industries. Small scale industries face multiple difficulties but continue to thrive due to the affordability and quality of the products. With more initiatives like Make in India, we can hope to see the industries prosper comfortably.

Also read:

1) 25 Top YouTube Channels for Small Business Owners
2) Here's a list of Best Cities to Buy Business Equipment, Furniture & more
3) Employment Opportunities With Make In India Campaign
4) Are There Any Promising New Solutions for Small Business' Marketing Problems?
5) Candle Manufacturers in India

Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more!
Download OkCredit now & get rid of your bookkeeping hassles.
OkCredit is 100% Made in India.

FAQs

Q. What are small scale industries in India?

Ans- Small scale industries are the industries in which the rendering, composition and production of services are done on a micro/small scale. Millions of people are a part of the small scale business in India along with import-export.

Q. Which is the most profitable small scale business in India?

Ans- This is a list of the top 15 most profitable small scale businesses in India:

1. Apparel Boutique Stores
2. Catering
3. Coaching Classes
4. Consultancy Companies
5. Indian Handicrafts
6. Jobs & Placement Services
7. Salon
8. Ice-Cream Parlour
9. Travel Agency
10. Wedding Bureau
11. Photography
12. Fitness Instructor
13. Cooking Classes
14. Online Businesses
15. Embroidery/Tailoring

Q. Which is the best small scale business?

Ans- The best small scale business in India is the Catering and Takeaway foods business. It needs low investment to begin and can be operated from home.

Q. What are the examples of small scale industries?

Ans- Some examples of small scale industries are as follows:

• Beauty Salons
• Breakfast Joints
• Juice Points/Milkshake Counters
• Blogging
• Daycare Services
• Small toys
• Paper Bags
• Leather Belts
• School stationeries
• Water bottles
• Customised Gifting

Q. Which industry is growing fastest in India?

Ans- The fastest growing industries in India are- Advanced Engineering & Manufacturing, The Energy Industry, Online Gambling Industry and the Digital Innovation Sector.

Q. What is the best small scale business to start in India?

Ans- This is a list of the 21 most successful small scale business ideas in India:

1. Content Writer Services
2. Consultancy Services
3. Home Baking
4. Wedding Planning and Consultancy
5. Florist/ Flower Delivery Service
6. Baby-Sitting Services
7. Repairing Services (Automobiles, Cellphones, etc.)
8. Uniform Making Services
9. Pandemic Sanitary Equipments Manufacturing
10. Tailoring Services
11. Property Management Services
12. Pest Control Services
13. Pet Grooming
14. Lawn Service
15. Building Maintenance Service
16. Aquarium Maintenance
17. Wedding Venue Business
18. Car Rental Services
19. Security Agency Business
20. Tiffin and Catering Service
21. Commercial Real Estate Broker

Q. Which industry will grow in 2022 in India?

Ans- These are the top 5 industries that are growing the fastest and best to start a business in 2022:

• Gaming
• Healthcare
• Fintech
• Digital Marketing
• Ed-Tech

Q. What are the types of small scale industries?

Ans- There are 3 types of small scale industries in India:

1. Service industries
2. Manufacturing/production
3. Ancillary

Q. What is small scale business in India?

Ans- Small scale businesses in India need low investment capital and are labour intensive. Small scale industries examples can either be service providers or manufacturing industries. Small scale industries in India include small enterprises that produce goods or render services with the aides of smaller instruments and a few mechanics and workers.

Q. Which are the most prominent small scale industries examples?

Ans- These are some of the examples of small scale industries in India:

• Graphic Designing
• Social Media Specialist
• Ecommerce Selling
• Podcasting
• Dropship Business
• Content Marketing
• Affiliate Marketing
• Human Resources Service
• Carpenter Services
• Bookkeeping Services
• Antiques Refurbishing
• Communication Skills Coaching
• Party Planner Services
• Life Coaching
• Interiors & Wallpapering Services
• Financial Consultancy
• Editing Services
• Art & Crafts Business
• Cooking Class Instructor
• Career Counselor
• Second-hand car selling
• Virtual Assistant
• Sports Coaching and Training

Q. How can I start a small industry?

Ans- Follow these steps to understand how to start a small scale industry in India:

Step 1- Choose your product for selling.
Step 2- Pick a location to set your enterprise.
Step 3- Planning the Organisation Pattern.
Step 4- Scheme Evaluation.
Step 5- Registering your business with respective authorities.

Q. Which small scale business is profitable in India?

Ans- The consumption of ice cream has grossly increased over the few years, hence, icecream cones manufacturing business is amongst the most profitable small scale business in India. An ice cream cone manufacturing unit can be set up in a small space with a meagre investment of 1 to 1.5 lakh rupees.

Q. What business can I start with 5000 rupees?

Ans- With a low capital of 5000 rupees you can start the business Mobile Recharge & SIM card selling in India.

Q. What business is good after lockdown?

Ans- Since the dawn of the COVID-19 Pandemic, the Doorstep Delivery Business has grown drastically on a global level. You can begin with various types of doorstep deliveries like-

1. Groceries
2. Medications
3. Food Delivery
4. Alcohol Delivery
5. Essential Items Delivery

Q. What type of business is small scale?

Ans- Small scale business in India indicates a business or organisation which is defined by the low primary investment, a short number of employees and coarse sales capacity as opposed to a regular-sized company or enterprise.