25 Low Cost Business Ideas with High Profit in India (2025)

"Discover the best low cost business ideas with high profit in India. From small home-based ventures to scalable opportunities, these ideas help you start smart with minimal investment and achieve maximum returns."

Low Cost Business Ideas with High Profit in India
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Anjali Singh

19 mins read

Published: 10 September 2025

Updated: 3 October 2025

Starting a business in India has never been more exciting! With unemployment rising and the self-employment trend booming in 2025, low cost businesses are becoming a popular choice. The best part? You don’t need a huge capital to start.

Whether you want to work from home, start a side hustle, or scale up later, there are plenty of options that require minimal investment but promise good returns. From food services and digital marketing to handmade crafts and tutoring, there is something for every skill set.

In this guide, we’ll explore 25 low cost business ideas with high profit in India, including estimated investment, profit potential, and scalability. Plus, we’ll show how you can fund your business with loans from My Mudra, making your entrepreneurial journey even easier.

Why Choose a Low Cost Business in India?

Starting small has several advantages:

  • Low Risk: Minimal investment means lower financial risk.
  • High Demand: Small businesses in India cater to growing urban and rural markets.
  • Scalability: Start small and scale up based on demand.

💡 Did you know? India’s MSME sector contributes over 30% to GDP and employs millions, showing the huge potential for small businesses.

Top 25 Low Cost Business Ideas with High Profit in India

Here’s a structured list of ideas, including estimated investment, profit potential, and scalability:

Business Idea Investment Profit Margin Scalability
Tiffin / Home Food Business ₹15,000–₹25,000 25–35% Expand via catering or online delivery
Freelancing Services ₹0–₹10,000 50–80% Build a team or agency
Handmade Crafts & Customized Gifts ₹10,000–₹30,000 30–50% Sell online or offline
Blogging & YouTube Channels ₹5,000–₹15,000 60–80% Monetize via ads, sponsorships, affiliate marketing
Fitness Trainer / Yoga Instructor ₹10,000–₹25,000 40–60% Offer online classes or expand offline
Dropshipping / E-commerce ₹10,000–₹20,000 20–50% Sell on multiple platforms
Event Planning & Party Services ₹15,000–₹30,000 40–60% Handle bigger events, corporate parties
Mobile & Laptop Repair Services ₹20,000–₹40,000 35–50% Add tech services or multiple locations
Digital Marketing Services ₹5,000–₹15,000 50–70% Start an agency, take more clients
Tuition / Coaching Classes ₹5,000–₹20,000 40–60% Add subjects, online courses
Cloud Kitchen ₹50,000–₹1,00,000 30–40% Add cuisines, expand delivery zones
Thrift / Used Clothing Store ₹20,000–₹50,000 30–60% Offline/online expansion
Stationery Shop ₹20,000–₹40,000 20–35% Expand product range or locations
Instagram / Social Media Store ₹10,000–₹20,000 30–50% Focus on trending products
Pet Care Services ₹15,000–₹30,000 30–50% Grooming, training, or products
AI Tools Reselling ₹10,000–₹25,000 40–70% Offer tools to businesses
Organic Farming ₹20,000–₹50,000 30–50% Sell to markets or online
Home-Based Daycare ₹20,000–₹40,000 35–50% Expand with multiple kids
Personal Fitness / Yoga Studio ₹15,000–₹30,000 40–60% Offer group sessions
Mobile Accessories Reselling ₹10,000–₹20,000 25–50% Sell online or offline
Customized Gifts & Merchandise ₹10,000–₹30,000 30–50% Seasonal sales, online marketing
Travel Planner / Agent Services ₹10,000–₹25,000 20–40% Expand with online bookings
Photography / Videography ₹25,000–₹50,000 40–60% Weddings, events, corporate clients
Baking / Home-Based Cooking ₹10,000–₹25,000 25–40% Expand via catering & online orders
Social Media Management ₹5,000–₹15,000 50–70% Take more clients, start an agency


1. Tiffin Service or Home-Based Food Business

India has a growing population of working professionals, students, and people living away from home who often rely on home-cooked meals. A small kitchen setup with just a few loyal customers is enough to get started. Over time, this business can scale into catering or tie-ups with online food delivery platforms. Consistency, hygiene, and taste are key factors to attract repeat clients.

Advantages:

  • Low investment in kitchen utensils and raw materials
  • High demand in offices, colleges, and hostels
  • Opportunity to expand into catering or online delivery

Investment Required: ₹15,000–₹25,000
Potential Profit: 25–35% per month
Target Audience: Students, working professionals, hostels
Marketing Tips: Promote via social media, WhatsApp groups, local flyers
Challenges: Maintaining quality, timely delivery, scaling to multiple locations


2. Freelancing Services

Freelancing offers a flexible way to earn money using skills such as writing, graphic design, programming, or digital marketing. Platforms like Fiverr, Upwork, and Freelancer allow you to connect with clients worldwide. The best part is that you can start from home with minimal investment and expand your client base over time. Freelancing also helps you build a personal brand while earning high profit margins.

Advantages:

  • No physical setup required
  • Work from home with flexible hours
  • High profit margins depending on skills

Investment Required: ₹0–₹10,000 (laptop/software)
Potential Profit: ₹20,000–₹1,00,000 per month depending on clients
Target Audience: SMEs, startups, bloggers, online businesses
Marketing Tips: Build a portfolio, social media promotion, join freelancing platforms
Challenges: Client acquisition, payment delays, competition


3. Handmade Crafts & Customized Gifts

Handmade crafts, candles, soaps, jewelry, and personalized gifts are in high demand, especially during festive seasons. Social media platforms like Instagram and Facebook make it easier to sell and promote products to a wider audience. Creativity, uniqueness, and quality are essential to stand out in this business. Over time, you can expand your product range and even sell through marketplaces or offline stores.

Advantages:

  • Low raw material cost
  • Creative products attract high demand
  • Peak sales during festivals and holidays

Investment Required: ₹10,000–₹30,000
Potential Profit: 30–50%
Target Audience: Gift buyers, festival shoppers, online shoppers
Marketing Tips: Instagram reels, Facebook shops, local fairs
Challenges: Scaling production, managing seasonal fluctuations


4. Blogging & YouTube Channels

Starting a blog or YouTube channel is an excellent way to share your knowledge, hobbies, or experiences while earning income online. Popular niches include travel, cooking, education, and lifestyle. Monetization can be done through ads, sponsorships, affiliate marketing, or brand collaborations. With consistent effort and quality content, this low-investment business can provide both active and passive income streams.

Advantages:

  • Minimal investment required
  • Potential for passive income
  • Opportunity to build a personal brand

Investment Required: ₹5,000–₹15,000 (domain, hosting, camera)
Potential Profit: ₹10,000–₹1,00,000+ per month after growth
Target Audience: Niche audiences based on content
Marketing Tips: SEO, social media promotion, collaborations
Challenges: Building audience, content consistency, monetization


5. Fitness Trainer or Yoga Instructor

Health and wellness are increasingly prioritized in urban India, creating opportunities for fitness and yoga professionals. You can start from home, online sessions, or a small studio. Offering personalized training and wellness programs can attract a dedicated client base. Certifications, consistency, and effective marketing help build credibility and long-term business growth.

Advantages:

  • Low investment in basic equipment
  • High demand due to fitness trends
  • Can start from home or small studio

Investment Required: ₹10,000–₹25,000
Potential Profit: ₹20,000–₹50,000 per month initially
Target Audience: Urban population, office-goers, homemakers
Marketing Tips: Social media promotion, referral programs, free workshops
Challenges: Client retention, need for certification


6. Dropshipping or E-Commerce

Dropshipping allows you to sell products online without holding inventory, as suppliers ship directly to customers. This reduces upfront costs and storage requirements. You can target trending products or niche markets to grow your business. With proper digital marketing strategies, this business can reach national and even international customers.

Advantages:

  • Minimal investment required
  • No storage space needed
  • Access to a wide market

Investment Required: ₹10,000–₹20,000
Potential Profit: 20–50% per product
Target Audience: Online shoppers across India
Marketing Tips: Promote via Instagram, Facebook ads, marketplaces
Challenges: Shipping delays, supplier reliability, market competition


7. Event Planning & Party Services

Event planning is ideal for people with organizational and networking skills. You can start by organizing small birthday parties, weddings, or corporate events and gradually expand. Creativity, attention to detail, and client satisfaction are crucial. This business is scalable and can yield high returns with a small investment in marketing and basic supplies.

Advantages:

  • Low capital required for marketing and supplies
  • High profit margin per event
  • Builds credibility with larger clients

Investment Required: ₹15,000–₹30,000
Potential Profit: ₹25,000–₹1,00,000 per event
Target Audience: Families, corporates, local communities
Marketing Tips: Networking, social media marketing, referral discounts
Challenges: Managing multiple events, last-minute emergencies


8. Mobile & Laptop Repair Services

Repairing smartphones, laptops, and tablets is a profitable business given the widespread use of devices. Even a small repair setup can earn steady income. Over time, you can expand services to include accessories, IT support, and hardware sales. Technical expertise and consistent quality are key for long-term success.

Advantages:

  • Low investment in basic tools
  • Consistent demand in urban and semi-urban areas
  • Expandable to other tech services

Investment Required: ₹20,000–₹40,000
Potential Profit: 30–50% per repair
Target Audience: Students, professionals, local residents
Marketing Tips: Google My Business, local ads, word-of-mouth promotion
Challenges: Need technical expertise, staying updated with new devices


9. Digital Marketing Services

With the rise of online businesses, small enterprises often need help with SEO, social media marketing, and content creation. Starting a digital marketing service from home is cost-effective and highly scalable. Developing a strong portfolio and networking with clients helps grow your business over time.

Advantages:

  • Can be operated from home
  • Tools and training are affordable
  • High demand across industries

Investment Required: ₹5,000–₹15,000
Potential Profit: ₹20,000–₹80,000 per month initially
Target Audience: Startups, SMEs, local businesses
Marketing Tips: Build portfolio, client referrals, free workshops
Challenges: Competition, client retention, constant skill updates


10. Tuition or Coaching Classes

Teaching school subjects, competitive exams, or skill-based courses is always in demand. You can operate from home or online. Quality education, structured lessons, and proper marketing will help attract students consistently.

Advantages:

  • Low investment in teaching materials
  • Continuous demand from students
  • Expandable with multiple subjects or online classes

Investment Required: ₹5,000–₹20,000
Potential Profit: ₹15,000–₹50,000 per month
Target Audience: School students, competitive exam aspirants
Marketing Tips: Local advertising, WhatsApp groups, social media
Challenges: Managing multiple students, maintaining teaching quality


11. Cloud Kitchen

A cloud kitchen is a delivery-only food business with no dine-in facility. Urban India’s growing appetite for online food delivery makes this a promising venture. You can start small with one cuisine and expand your menu based on customer preferences. Partnering with delivery apps can help scale quickly while keeping operational costs low.

Advantages:

  • Moderate investment for kitchen setup
  • High demand in urban areas
  • Expandable via multiple cuisines or delivery platforms

Investment Required: ₹50,000–₹1,00,000
Potential Profit: 30–40% per month
Target Audience: Office-goers, students, urban households
Marketing Tips: Partner with Swiggy/Zomato, social media promotion
Challenges: Managing deliveries, maintaining hygiene and quality


12. Thrift / Used Clothing Store

Selling second-hand clothing online or offline is gaining popularity among budget-conscious and eco-conscious shoppers. Sourcing unique and trendy items can create a loyal customer base. Social media platforms and marketplaces make promotion and sales easier for small-scale sellers.

Advantages:

  • Low setup cost
  • Eco-friendly business appeal
  • High profit margins on unique items

Investment Required: ₹20,000–₹50,000
Potential Profit: 25–50%
Target Audience: Students, millennials, eco-conscious shoppers
Marketing Tips: Instagram, Facebook Marketplace, local events
Challenges: Sourcing unique items, storage management


13. Stationery Shop

A stationery shop caters to students, offices, and professionals with daily essentials like notebooks, pens, and art supplies. Consistent demand ensures steady income. You can also sell niche products like customized stationery to stand out from competitors.

Advantages:

  • Low initial investment
  • High recurring demand
  • Expandable product range

Investment Required: ₹20,000–₹40,000
Potential Profit: 20–35% per month
Target Audience: Students, office-goers, local businesses
Marketing Tips: Tie-ups with schools, local flyers, social media
Challenges: Seasonal fluctuations, competition from online stores


14. Instagram / Social Media Store

Selling products via Instagram or Facebook allows targeting specific audiences directly. Trending items, fashion accessories, or gadgets can quickly gain traction with the right marketing. Creative visuals, engaging posts, and influencer collaborations help boost sales.

Advantages:

  • Minimal investment required
  • Direct audience access
  • Flexible and scalable

Investment Required: ₹10,000–₹20,000
Potential Profit: 30–50% per product
Target Audience: Young adults, online shoppers, niche audiences
Marketing Tips: Influencer collaborations, engaging content, giveaways
Challenges: Staying updated with trends, building a follower base


15. Pet Care Services

Pet grooming, daycare, or training services are in demand as pet ownership rises in urban areas. Providing personalized attention and quality care can help establish a loyal client base. This business can be expanded by adding pet products or training workshops.

Advantages:

  • Low startup cost
  • High demand for premium services
  • Expandable to pet products

Investment Required: ₹15,000–₹30,000
Potential Profit: 30–50% per month
Target Audience: Pet owners, urban households
Marketing Tips: Instagram, local vet tie-ups, referral programs
Challenges: Handling animals, maintaining consistent client base


16. AI Tools Reselling

Reselling AI software and automation tools is a growing opportunity as businesses adopt digital solutions. You can target SMEs, startups, and corporate clients by offering niche tools or automation packages. Knowledge of the tools and clear communication helps you gain credibility.

Advantages:

  • Low investment
  • High profit margins
  • Scalable across multiple industries

Investment Required: ₹10,000–₹25,000
Potential Profit: 40–70% per tool
Target Audience: SMEs, startups, corporates
Marketing Tips: LinkedIn marketing, webinars, cold outreach
Challenges: Educating clients, competition from established vendors


17. Organic Farming

Growing organic vegetables, fruits, or herbs has a rising demand in urban households and restaurants. Even a small land plot can yield profitable crops. Organic farming also allows expansion into packaged or processed organic products for higher margins.

Advantages:

  • Moderate investment in seeds and soil
  • Growing market demand
  • Expandable to processed organic products

Investment Required: ₹20,000–₹50,000
Potential Profit: 30–50% per harvest
Target Audience: Urban households, restaurants, organic stores
Marketing Tips: Farmer’s markets, online delivery, local partnerships
Challenges: Seasonal fluctuations, pest management


18. Home-Based Daycare

A daycare service for children caters to working parents seeking safe and reliable care. Starting small with a few children helps you maintain quality. Over time, you can expand by hiring staff or adding educational activities to increase revenue.

Advantages:

  • Low initial investment
  • Steady demand from working parents
  • Expandable with additional children or staff

Investment Required: ₹20,000–₹40,000
Potential Profit: 35–50% per month
Target Audience: Working parents, dual-income households
Marketing Tips: Local ads, referrals, social media promotion
Challenges: Safety concerns, maintaining trust and hygiene


19. Personal Fitness / Yoga Studio

Offer specialized fitness or yoga programs to small groups or individuals. You can start from home, a rented studio, or online classes. Consistency, personal attention, and results-driven programs help retain clients and grow your business.

Advantages:

  • Low investment in equipment
  • Growing demand for personal wellness
  • Scalable through group sessions or online classes

Investment Required: ₹15,000–₹30,000
Potential Profit: 40–60% per month
Target Audience: Fitness enthusiasts, urban population
Marketing Tips: Instagram, referral programs, free workshops
Challenges: Retaining clients, maintaining certifications


20. Mobile Accessories Reselling

Sell phone covers, chargers, headphones, and other accessories to tech-savvy customers. Accessories have consistent demand due to device upgrades. A combination of online and offline sales can maximize reach.

Advantages:

  • Low startup cost
  • High demand among mobile users
  • Expandable product line

Investment Required: ₹10,000–₹20,000
Potential Profit: 25–50% per product
Target Audience: Students, young adults, office-goers
Marketing Tips: Instagram shops, WhatsApp catalogs, local promotion
Challenges: Competition, keeping inventory updated


21. Customized Gifts & Merchandise

Offer personalized mugs, t-shirts, or corporate gifts. Occasions, events, and branding needs create a steady demand. Scaling online or offline increases profitability.

Advantages:

  • Low investment in printing equipment
  • High demand during festivals and events
  • Scalable online and offline

Investment Required: ₹10,000–₹30,000
Potential Profit: 30–50%
Target Audience: Corporate clients, students, gift buyers
Marketing Tips: Social media, seasonal campaigns, collaborations
Challenges: Seasonal demand, order management


22. Travel Planner / Agent Services

Plan trips, tours, and itineraries for clients looking for curated travel experiences. Focusing on niche markets like adventure or corporate travel can differentiate your service. Online booking systems and partnerships with hotels/transport providers help scale operations.

Advantages:

  • Low initial investment
  • Commission-based income
  • Expandable with online bookings

Investment Required: ₹10,000–₹25,000
Potential Profit: 20–40% per booking
Target Audience: Families, groups, corporate clients
Marketing Tips: Travel blogs, social media promotion, referrals
Challenges: Seasonal demand, managing multiple clients


23. Photography / Videography

Offer professional photography and videography for weddings, events, or businesses. A strong portfolio and social media presence attract clients. You can expand by providing editing services or stock content.

Advantages:

  • Moderate investment in camera and equipment
  • High profit per event
  • Expandable with online portfolios

Investment Required: ₹25,000–₹50,000
Potential Profit: 40–60% per project
Target Audience: Couples, corporates, event organizers
Marketing Tips: Instagram, wedding portals, referrals
Challenges: Client acquisition, managing tight schedules


24. Baking / Home-Based Cooking

Bake cakes, pastries, or snacks for birthdays, festivals, and small events. A small kitchen setup is sufficient to start. You can later expand to catering or online delivery through apps.

Advantages:

  • Low investment in ingredients and equipment
  • High demand for homemade goods
  • Expandable via catering or online delivery

Investment Required: ₹10,000–₹25,000
Potential Profit: 25–40% per month
Target Audience: Students, families, local communities
Marketing Tips: Instagram, food delivery apps, local flyers
Challenges: Maintaining hygiene and quality, scaling production


25. Social Media Management

Manage social media accounts for small businesses or influencers. Businesses increasingly recognize the importance of online presence, making this a highly demanded service.

Advantages:

  • Work from home
  • Minimal tools required
  • High demand across industries

Investment Required: ₹5,000–₹15,000
Potential Profit: ₹20,000–₹80,000 per month initially
Target Audience: SMEs, startups, influencers
Marketing Tips: Build portfolio, offer free trial packages, LinkedIn outreach
Challenges: Client retention, staying updated with social media trends


Tips to Make Your Low Investment Business Successful

  • Market Research: Study demand, competition, and customer preferences.
  • Start Small: Don’t over-invest initially; scale gradually.
  • Social Media Promotion: Use Instagram, Facebook, and WhatsApp to promote at minimal cost.
  • Focus on Quality: Good quality products/services keep customers coming back.
  • Track Finance: Keep a clear record of expenses and profits.

How to Choose the Right Business Idea for You

  • Skills & Passion: Pick a business that matches your abilities.
  • Market Demand: Check if there’s a need for your service/product.
  • Investment & ROI: Ensure the business can give good returns.
  • Time & Effort: Decide if it’s a part-time or full-time venture.
  • Scalability: Can you grow it into a bigger business later?

Conclusion

In India, there are plenty of opportunities for running low cost business ideas with high profit for entrepreneurs. Food services, digital marketing, teaching, dropshipping - they serve every possible skill set. The demand begins with smart planning, low investment, and high quality. My Mudra will support you in planning and meeting your financial needs smoothly. Speak to our team, and we will ensure quick disbursement of your business loan online at the lowest interest rates possible in the shortest time.

Also Read:
- Most Profitable Business Ideas in India 2025
- Most Successful Small Business Ideas in India

Frequently Asked Questions
Which is the best low investment business in India? +

Small food businesses, freelancing, or online tutoring are popular options with minimal capital requirement.

How much capital do I need for a low budget business? +

Most low-cost businesses in India can start with ₹5,000–₹50,000 depending on the type.

Can I start a profitable business from home? +

Yes! Blogging, YouTube, freelancing, and tiffin services are excellent home-based businesses.

How can I scale a low investment business? +

Expand product lines, add online delivery, hire staff, or target more locations/customers.

Are online businesses profitable in India? +

Absolutely! E-commerce, dropshipping, digital marketing, and Instagram stores have high profit potential.

Do I need any training or certification? +

Some services like fitness, yoga, or tech repair require certifications to build credibility.

Can My Mudra help me fund a small business? +

Yes, My Mudra provides quick business loans at low interest rates to help entrepreneurs start or expand.

Which businesses have the fastest ROI? +

Freelancing, tiffin service, digital marketing, and blogging often give quick returns with minimal investment.

Is social media marketing necessary for small businesses? +

Yes, promoting your business online is essential for customer reach and revenue growth.

Can students or homemakers start these businesses? +

Definitely! Many low-cost businesses are ideal for students, homemakers, or part-time entrepreneurs.

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Anjali Singh Assistant Manager
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Hey there, I'm Anjali Singh. With over 6 years of experience in finance, I specialize in creating content on banking, loans, and financial planning. My goal is to simplify complex financial topics and help readers make informed decisions through my articles.

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