Top MSME Business Ideas in India (2025) for High Profit
India has been the land of the fastest growth and development over the past few decades. We have witnessed the glory of technology, businesses and developing regions nationwide. One of the key reasons for India's economic growth is the Micro, Small and Medium Enterprises (MSME).
The government and financial institutions in the country are encouraging people to start businesses. By doing so, you will contribute to the country's overall growth and push India further up the ladder globally.
Top Successful MSME Businesses in India
Before we take a look at the different MSME businesses in India, let's take a look at the criteria in terms of investment and annual turnover for a business to fall under the MSME sector:
| Category | Maximum Investment | Maximum Annual Turnover |
| Micro | INR 1 crore | INR 5 crore |
| Small | INR 10 crore | INR 50 crore |
| Medium | INR 50 crore | INR 250 crore |
So, if your business investment and turnover fall within this range, you are part of the benefits, schemes and other provisions for MSME in India.
MSME Categories Explained: Manufacturing and Service Sectors
Manufacturing Sector
The manufacturing sector forms a core part of the MSME business ecosystem in India, contributing significantly to employment, exports, and GDP. These businesses are classified as Micro, Small, or Medium Enterprises based on specific thresholds for investment in plant and machinery and annual turnover. With the right approach, there are several profitable MSME business in India, especially in manufacturing. If you’re exploring manufacturing ideas for MSME, this space offers strong potential for scalable and sustainable growth.
If you are looking for unique business ideas in India or need low investment business ideas, here are some of the thriving manufacturing businesses under MSMEs in India:
| Machinery | Construction Materials | Biotechnology |
| Oil, Gas, Coal | Electronic and Electrical Goods | Industrial Supplies |
| Industrial Engineering | Renewables and Environment | Food Processing |
| Packaging Material and Supplies | Agriculture and Farming | Medical and Healthcare Products |
MSME businesses in these manufacturing industries have shown extreme potential and growth in India. Regarding the Khadi and Food processing industries, the Government of India has undertaken various initiatives to support and encourage SME businesses. The Ministry of MSME introduced the Scheme Fund for Regeneration of Traditional Industries (SFURTI) and the Prime Minister's Employment Generation Programme (PMEGP) to help and support MSME businesses flourish in the non-agriculture sector.
Government supports the business ideas and initiatives of the MSME sector. According to a report, the MSME Ministry also launched A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE) to foster innovation and the creation of new businesses, including those engaged in food processing. By providing them with support for selling their products through Khadi & Village Industries Commission (KVIC) sales outlets, the Ministry of MSME is also helping micro industries market their agriculturally based products like papad, masala, jam, jelly, etc.
Also Read: Funding for Small Business? Explore Government Schemes and Loan Options
Some of the products the government has exclusively marked for manufacturing by the MSME industry are:
- Food and Allied Industries
- Pickles
- Bread
- Groundnut Oil (except solvent extracted)
- Chutneys
- Mustard Oil (except solvent extracted)
- Chemical and Chemical Products
- Laundry Soap
- Wax Candles
- Fire Works
- Safety Matches
- Agarbattis
- Glass and Ceramics
- Glass Bangles
- Mechanical Products, excluding Transport Equipment
- Steel almirah
- Rolling shutters
- Steel chairs-All types
- Steel tables-All other types
- Steel furniture-All other types
- Padlocks
- Stainless steel utensils
- Domestic utensils-Aluminium
- Wooden Furniture and Fixtures
- Wooden Furniture and Fixtures
If you are looking for the best business ideas or need business ideas for women, you may consider the above list. Many of these business ideas are low investment, so you can have an easy start.
MSME Service Sector
The MSME service sector plays a vital role in India’s economy, forming the backbone of the MSME business landscape. Contributing nearly 58% to the country’s GDP, it represents one of the most powerful engines of growth.
From IT services, consulting, education, and logistics to retail, the sector offers a wide array of opportunities. These businesses are often easier to start, require lower upfront investment, and offer flexible scalability—making them ideal small business ideas.
If you're looking for profitable and sustainable MSME business ideas, the service sector is a promising place to begin.
- Digital Marketing Agency
Offer SEO, social media, and performance marketing services to local and online businesses. A top choice in the MSME list of business for its low setup cost and high demand. - Event Management
Plan and execute weddings, corporate events, and social functions. This is one of the most scalable MSME small business ideas requiring creativity, coordination, and networking skills. - Online Tutoring
Start an e-learning platform or offer niche subject coaching. Online education is a rapidly growing space and a profitable MSME business idea with minimal infrastructure needs. - Home-Based Catering
Ideal for food enthusiasts, this MSME business allows you to serve homemade meals or tiffins to corporate clients and households with low investment and high repeat demand. - Mobile Repair and Electronics Services
With rising gadget usage, repair services for phones, laptops, and other electronics are always in demand—making it a sustainable and skill-driven MSME small business idea.
| Food Catering | Small Restaurants | Appliances Stores |
| Beauty Parlour | Cloud Kitchens | Electronic Surveillance and Security |
| Food Vans | Crèches | Energy Efficient Pumps |
| Engineering and Fabrication | Furniture | IT Solution Provider |
The small businesses have played a successful role in making life more convenient and products accessible to everyone. They have also been crucial in developing rural and semi-urban areas by providing employment opportunities and utilizing people's skills and raw resources. However, service sector MSMEs do face some challenges. One of the major challenges is the availability of working capital. To aid this situation, small businesses should move toward flexible and safe business loans.
Looking to explore more MSME business ideas beyond the usual? Here are some promising options gaining popularity across India. These ventures are part of the evolving MSME list of business opportunities and offer strong potential for growth.
Other Promising Ideas Under MSME
- Handicrafts and Artisan Products
- Support local artisans by creating or selling handmade products. This MSME small business idea promotes traditional crafts while tapping into domestic and global demand for authentic, sustainable goods.
- Beauty and Wellness Services
- Start a salon, spa, or mobile beauty service. A low-investment yet high-demand MSME business idea ideal for urban markets focused on self-care and grooming.
- E-Waste Recycling
- Offer responsible disposal and recycling of electronic waste. It’s a profitable, eco-conscious MSME business opportunity aligned with India’s growing focus on sustainability.
- Career Coaching and Skill Development
- Provide resume building, interview prep, or skill training services. This MSME small business idea is gaining traction as individuals invest more in career growth and upskilling.
Low Investment Option Under MSME Business
If you’re searching for budget-friendly MSME business ideas, there are several low-investment ventures that offer strong returns. These ideas are ideal for first-time entrepreneurs looking to start small and scale gradually.
- Incense Stick (Agarbatti) Making
- An easy-to-start MSME small business idea with minimal investment in raw materials and machinery. High local demand and export potential make it a profitable venture in semi-urban areas.
- Bakery Products
- Homemade cakes, cookies, or snacks can be sold locally or online. A low-investment MSME business idea that requires basic culinary skills and a home kitchen setup.
- Fashion Jewellery Making
Create trendy, handcrafted jewellery using beads, stones, or resin. This creative and scalable business fits well in the MSME list of business with rising demand in urban and online markets.
Also Read: Everything you need to know about Business Loans – A definitive guide
Government Schemes for Small Businesses in India
| Scheme | Description |
| Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE) | Established by the Ministry of MSME and Small Industries Development Bank of India (SIDBI) only for Micro and Small Enterprises |
| Prime Minister Employment Generation Programme (PMEGP) | Under this scheme, any new project in the manufacturing sector worth up to INR 25 lakh and a new business/service sector worth up to INR 10 lakh will get financial assistance. |
| Interest Subsidy Eligibility Certificate (ISEC) | For the promotion of Khadi and Village Industry products |
| Market Promotion & Development Scheme (MPDA) | For the promotion of Khadi and Village Crafts |
| Revamped Scheme of Fund for Regeneration of Traditional Industries (SFURTI) | This was established to improve traditional industries, emphasizing traditional skills, and ensuring long-term sustainable income for rural artisans |
| ZED Certification | Stands for Zero Defect and Zero Effect (ZED). It aims at reducing waste and improving productivity. All MSMEs with Udyog Aadhar are eligible |
| National Manufacturing Competitiveness Programme (NMCP) | To enhance competitiveness in the MSME sector to promote growth. |
| Entrepreneurship and Skill Development Programme (ESDP) Scheme | Encouraging entrepreneurship and growth of MSMEs in India |
The government has also introduced positive reforms for the MSME industry under Atma Nirbhar Abhiyan. Let's take a look:
- Availability of INR 3 lakh crore collateral-free and automatic loans
- MSMEs can now enjoy INR 20 crore subordinate debt
- An infusion of INR 50,000 crore was done through the MSME Fund of Funds
What are Other Loan Options Available?
There are many types of loans in India. If you have a property that you can offer as a collateral, you can opt for mortgage loan a.k.a Loan Against Property, or Business Loan Against Property. If you don’t have any collateral or a property that can be mortgaged, you may opt for unsecured Business Loans.
Getting Started
Starting a business doesn't have to be a dream anymore! Take inspiration from the endless opportunities we have listed for you in the MSME industry. With Loans for Business, you can make your business dreams come true! Take the next step, apply now.
Also Read: A Complete Guide to the Different Types of Loans Available in India
Need more information, visit our Knowledge Center to learn more about loans and funding options.
FAQs
Q.1. I have some new business ideas. Can I get business loan from Godrej Capital?
A. Godrej Capital offers Business Loans with some pre-defined criteria. One of the criteria is for a business to have a vintage of 3+ years. Although, unsecured business loan can’t be availed if you are starting a new business, you may consider Loan Against Property or Udyog Loan Against Property.
Q.2. I have low investment business ideas. I want to start a new business. Can I get Loan Against Property?
A. Yes, you can avail Loan Against Property to start a new business. Loan Against Property has no end-usage restrictions.
Q.3. How can I calculate loan EMI?
A. Calculate monthly loan EMI using a simple online loan EMI calculator. Click here to access
Q.4. I want to expand my business and need funds. Can I get a Business Loan?
A. You can get Business Loans to meet your business requirements. But first, you may want to check your eligibility. A lender considers various factors before sanctioning business loans. With an online Business Loan EMI calculator, you can easily assess your business loan eligibility.
Q.5. How to apply for a Business Loan for Women?
A. Godrej Capital offers tailored Business Loans for Women. Simply click here to apply now and get funding as per your unique business needs.
Disclaimer:
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