Top 20 small retail business ideas in India.

Most profitable retail business to start

Thanks to the influx of new retailers, India’s retail sector has become a fast-paced industry. In India, the retail industry accounts for 10% of GDP and 8% of jobs.

retail business ideas in India
retail business ideas in India

By economic size, India is one of the top-five retail markets in the country. It is one of the world’s fastest-growing retail markets.

People need goods regularly, so they look for nearby shops or hotels. With low and moderate expenses, retail is the most profitable sector in India.

So, for a high-profit margin company in India, people with a low or moderate capital expenditure should concentrate on small or medium retail stores.

A retail sector is one in which products are sold directly to consumers to make a profit.

With the introduction of shopping centers and large corporations into the retail market, it has become a much more centralized sector than before.

This company can be started by a young enthusiast with a small shop that can then be extended to several retail stores.

The amount of money you need to spend in a retail company is determined by how big you want to develop it. You can start small, keep it small, or develop it into a medium-sized enterprise.

Retailing is the process of purchasing goods from a wholesaler or retailer and marketing them to a customer. To start a retail business in India, you’ll need the following:

An understanding of the commodity you want to market and the origins from which you will obtain it.

To begin the sale, you’ll need some rooms. In India, vendors can be found anywhere from their autos, houses, and even the roadside to more sophisticated locations such as stores.

Since you’ve registered your business company, you’ll need to open a bank account to register for sales tax.

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Types of Top Retail Business ideas in India

  1. Low investment business
  2. Medium investment business
  3. High investment business

1)Grocery store or Kirana store-

Retail business ideas in India:

In today’s world, it is one of the most profitable supermarket businesses.

It does not necessitate any special abilities, and the expenditure is also modest. It can be started in any suburban neighborhood.

This industry necessitates a great deal of effort and hard work. You can also open an online store and sell food there.

If the service is well received, this could become one of the best online retail business concepts.

It’s important to buy in bulk from a wholesaler to save money on the goods you choose to market. This will assist you in setting a competitive price for the commodity.

INR 100,000 as an investment
60 percent profit margin

2)Distribution of Fertilizer-retail business idea

The local supply of various forms of fertilizer, pesticides, and insecticides is entirely dependent on the area’s limited fertilizer stores. You may also market seeds and other equipment to farmers with fertilizer.

This company in India requires a valid license and approval from the appropriate authority.

In rural regions, cultivation and agriculture-related operations account for about 75% of total revenue.

Fertilizer is a dependable industry that shows no signs of slowing down. The rise in the global population is mostly responsible for the increase in food demand.

Find vendors in your field who are happy to do business at a reasonable price. Obtain high-quality materials from a reputable supplier at a fair cost.

In addition, if you are purchasing in bulk, you can ask for import. Your choice of supply will be determined by your startup budget.

Fertilizers should be kept isolated from other ingredients under dry conditions. In addition, you must ensure that the floor is damp-proof. Pallets should be provided to hold the drums or bags off the ground.

Your expense and customer loyalty can be affected by how you sell your goods and provide your services. Arrange for adequate transportation.

3) HYDROPONIC STORE: best retail business idea in India.

Hydroponics is a method of growing plants without the use of soil. Growers only use water and water-soluble nutrients in this region.

Hydroponics machinery is in high demand in our country because it has many benefits over conventional agriculture.

Consumers are becoming increasingly worried about health concerns, environmental issues, and also the cost and supply of water, all of which are driving demand for hydroponic growing techniques.

The biggest benefit of hydroponics is that it provides farmers with efficient environmental controls as well as a very stable high crop yield.

This process’s water can be collected and stored for future use. The method is maintained in a sterile substrate that contains the proper amount of macro and micronutrients and prevents weed growth.

Conduct a thorough search for items such as hydroponic grow lights, soil nutrients, water storage systems, agricultural fertilizers, air pumps, submersible pumps, reservoirs, and ozone generators, among others.

Collect materials from dependable vendors and ensure the delivery can go smoothly on their end. Check the minimum order quantity and the estimated delivery time.

4) Nursery shop– most profitable retail business idea.

The extracting of seeds from a fully grown fruit for seed processing is the first step in beginning a plant nursery, and seeds can be harvested without being lost.

The second step is to plant the harvested seeds, which should be sown in seedbeds or germination trays for future development.

This is a vital move and should be completed with caution.

The saplings would then be transferred to small storage units or polybag containers. The young saplings should then be carefully transferred to a healthy transplanting point.

The mother or key plants used for seed extraction should be preserved as well, as they are used for seasonal propagation.

After that, it’s time to carefully maintain the saplings, which should be watered regularly and protected from pests and other influences.

You can keep track of everything, such as what helps them grow faster and what elements in the soil are needed, as well as which season is better for growing which species of plants so that sampling will grow at its best.

Your plants are now ready to sell in your nursery after it has been completed.

Things needed to start nursery -Land, Soil, What you want to sell which plants- sampling, seeds, Manure, Water, Nursery Tools, Machinery and Equipment, Manpower

5) Retail seed store-small town business idea

The technique of dryness can be used to make seeds at home. To avoid spoilage, seeds should always be stored in a dry environment.

Generally speaking, any seed taken from a fruit or vegetable should be allowed to dry before being sold.

Seeds from these vegetables and fruits are put on a sheet of newspaper to dry.

Remember not to use plastic items here because the substance could damage the extracted seeds.

Furthermore, excessive dryness can harm plant development. Make sure the seed does not come into contact with extremes of cold or humidity.

The manufacturing process has come to an end at this stage.

The seed production process in Farm

  • Soaking the seeds– To repeat the process, you’ll need pure seeds to get started. These seeds are cleaned by soaking them in saltwater to eliminate soil and other impurities.
  • The undeveloped seeds are also weeded out during this process. Another crucial goal of this process is to get rid of any seeds that have been harmed by pests.
  • It is critical to eradicating these seeds because their spoiled state has the potential to render other seeds inactive.
  • Seedbed—At this stage, the seedbed has been prepared for the seeds to germinate.
  • To promote rapid development, this seedbed should be smooth and fertile. The seed bed’s size can be determined by the soil and temperature.
  • The seeds are harvested from the down-end grown plants at the end of this point.
  • Sun-drying– The harvested seeds are now permitted to dry in the sun for a certain amount of time. This is done to promote germination.
  • Crop grading is the process of grading seeds based on their consistency. At this stage, the seeds will be inspected to ensure proper grouping.
  • After applying appropriate fertilizers and other preventive methods, a suitable package system is chosen for seed storage.
  • Land planning– The seeds for future cultivation must be planted in a stable environment. As a result, the ground where this takes place is prepared using conventional methods such as harrowing and plowing.

6) Auto parts business– best business to start.

Any auto spare component must be replaced regularly during the vehicle’s lifetime. And it is for this purpose alone that the car spare parts market is so profitable and long-lasting.

The largest automobile aftermarkets in the world are the United States, Canada, Germany, the United Kingdom, Russia, China, India, South Korea, Japan, Indonesia, Thailand, Brazil, Mexico, Argentina, and South Africa.

Based on your investment potential, there are many ways to start a company. However, you can never attempt to run this company part-time.

To be competitive, this form of retail company necessitates continuous commitment and efforts.

In reality, you can open an auto parts shop in both rural and urban areas. And so, the company is ideal for small cities. The car parts market, in general, caters to a wide variety of subcategories.

Two-wheelers, four-wheelers, construction vehicles, and other vehicles are included. However, it is recommended that you concentrate on a particular niche.

7) Tea stall business– it is Most profitable rural business idea

Opening a small tea stall is a lucrative and self-satisfying venture. You can open a shop of any size depending on your financial resources. You might even try purchasing a franchise.

In India, tea is served at all times. In India, mornings aren’t full without a cup of tea. Tea is also preferred over coffee by some individuals.

For every cup of coffee consumed in India, 30 cups of tea are consumed. A typical Indian adult consumes at least two cups of chai per day. It can even go up or 4 to 5 cups at times.

India is the world’s largest tea consumer and the world’s second-largest tea manufacturer, after China.

Tea stalls are a great place to start a company not only in big cities but also in small towns. In reality, depending on the region and population density, Tier II and Tier III cities have seen comparable demand to metro cities.

For women entrepreneurs who want to be financially stable, opening a tea shop is a simple business to launch.

The company, on the other hand, necessitates long hours, hard work, and direct customer contact.

Tea shops have been increasingly common in recent years. Many businesses are now selling franchise options to small business owners.

If you want to start a company with a well-known name, a franchise is a right choice. You will produce a decent number of clients right away if you have a well-known name.

However, if you want to open a shop with a small investment or grow your brand, you can go into business for yourself.

If you have prior retail experience, running your own business is the more lucrative choice for you. If you are a novice, on the other hand, a franchise is the best choice.

8)Ladies garment shop– profitable retail business idea

Ready-to-wear clothing is a $3 trillion market, with over one trillion garments sold per year across the world.

According to McKinsey’s FashionScope numbers, India’s apparel industry will be worth more than $59.3 billion by 2022, making it the world’s sixth-largest clothing producer.

An increasing population and a developing, aspirational middle class are driving business growth. It’s a large industry with plenty of space for everybody, big and small.

Since purchasing clothes in bulk from a manufacturer or wholesaler, a clothing reseller or retailer sells it to the general public. There are several different kinds of clothing to offer.

Your shop should be in a high-traffic area where a large number of customers can see your clothing as they pass by.

Leasing a store in a shopping center with a lot of foot traffic, for example, might be a smart option. You can have a receiving and tagging area, a small employee lounge, and office space in addition to the main showroom.

Your shop should be situated in such a way that passers-by can see it from the driveway. People are more likely to come and check out your shop if it is available.

9) Mobile phone shops – IT hardware retail business in India.

Mobile phones and smartphones have been a huge craze among the millennials and a need for all. As a result, starting a mobile shop is a fantastic retail business concept.

This company needs only a small initial investment. The product and brand you keep at the store determine the future of this company.

You should not put too much money into the market at first because it is a very competitive sector.

Since the majority of customers buy cell phones and replace them within a limited period, this is one of the most popular retail business concepts right now. This is one of India’s best shop market concepts.

10) Travel agency-most profitable transport business idea in India.

In India, the travel industry has exploded in the last decade. With people’s shifting preferences and appetite for the ultimate “wanderlust,” now is the perfect moment for young entrepreneurs to put their capital where the map is.

Partnering with a host agency is the most cost-effective way to start a home-based travel agency.

You’ll benefit from the advantages of speed (getting the ARC, CLIA, or IATA number faster), comfort (they handle all the “back-end” functions), and higher commissions and lower prices for doing so.

Though the prices vary depending on the host organizations, the majority of the initial costs would be less than Rs 10,000.

11) Stationary store– One of the most profitable business ideas in India.

Opening a stationery store does not entail any advanced knowledge, making it an excellent choice for those who are not highly educated but want to get into the retail industry.

A stationery store will carry a variety of items such as school books, picture books, magazines, notes, markers, pencils, colors, and even instructional DVDs and toys.

You might also start offering items that other bookstores in the region don’t have, such as new-age educational toys and artistic art kits.

Complementary products such as toys, gift covers, designer sheets, paper bags, novelty stuff, school bags, and other items are also sold in bookstores.

Investment– INR 100,000.
ROI– 6 to 8 months.

12)Food truck business plan– Profitable food business idea in India.

How much does it cost to start a Food Truck in India?

In India, a typical food truck will cost between INR 8-10 lakhs. A fully fitted food truck will cost up to 20 lakhs on the high end of the spectrum.

The below is a detailed breakdown of all costs:

  1. Vehicle: To begin, you’ll need a truck. You can either buy a used truck or rent one. A truck would usually set you back at least INR 4 lakhs.
  2. Equipment: You’ll need to make a one-time purchase of critical kitchen equipment for your truck. The grill, utensils, cooking pots, and cutlery would all be included.
  3. To cook the recipes, you would need a supply of inventory or raw materials. That would set you back around INR 20-30,000.
  4. POS: The point-of-sale system is far more than a single piece of hardware that handles billing and technology.
  5. CRM, analytics, and inventory are only a few of the main market functions it connects to. A decent POS would set you back around INR 25-30,000. (6-month pack).
  6. Staff: You would need to recruit a few resources to run your business’s main daily activities. Fortunately, recruiting staff in India is not prohibitively expensive. You should set aside about $13,000 to $15,000 per month per person.

Benefits of the opening of the food truck:

  • Low risk, low investment: If you spend wisely, a food truck would cost you less than INR 10 lakhs.
  • Fewer services are needed: One of the biggest benefits of owning a food truck is that you don’t have to rely on a lot of money. You can also start with only a couple of tools (costing you around 4-8K INR per person).
  • Experiential learning: This is a perfect place to start if you want to learn about the different tasks involved with running a food company quickly. You can assess data analysis processes, gain a better understanding of consumer tastes and desires, perform critical organizational tasks, monitor ads and promotions, and so on.
  • Catering at events: In addition to your regular activities, you should consider forming a few alliances and catering at events such as corporate festivals. For example, the Curry Up Now food truck sells delicious Indian street food and caters to a wide range of tests and corporate events.
13) Tiffin service business plan– best small town business idea in India.

Entering the food business is almost always a lucrative decision. Many working adults now tend to eat at home but lack the time to prepare and transport home-cooked meals to work.

This is where you would be able to help. There is no reason to pay for additional space because the cooking would most likely be done in your kitchen.

As a result, at this stage, the only significant investment you’ll need to make is in a middleman to provide these services.

14) Perfume store– best small retail business ideas in India.

A perfume shop is the retail segment’s sixth most critical unit. This will have an outstanding odor for the shop owner in this kind of retail establishment. It’s a fun thing to shop and launch a new day for consumers as well.

So, once again, perfume is an interesting field, and a perfume retailing company will thrive in this region.

Company marketers, on the other hand, must first comprehend people’s needs before developing their consumer niche.

If a perfume shop does well, it will receive between 3 and 4 lacs every month.

15) Furniture store-Profitable small business to start.

Furniture is essential for homes, and people need it for both personal and workspaces to decorate their apartments or offices.

In India, recent benefit rates in the furniture industry have been about 45 percent.

This indicates that there have been fewer options for furniture, as well as a modest demand.

As a result, furniture owners should see this situation as a challenge and improve this sector for greater benefit. Such rivals will be even less of a threat to them.

16)Car washing zone– Profitable small business to start in India.

In places like Australia, New Zealand, and other parts of the world, the car washing zone is a very common retail market.

With the increasing number of private cars in India, the need to wash cars regularly has become a frequent occurrence.

People are always on the lookout for places where vehicles can be cleaned quickly and cheaply in such a situation.

As a result, India’s automotive industry is booming, and consumers are actively purchasing new vehicles.

17)Pet shop –small business ideas in India

If you enjoy animals, a one-stop pet store is ideal for you. This company can be effectively run by people who are excited about pets and have a strong understanding of the industry.

There are many items available on the market that you can keep in your shop. You may also provide ancillary facilities to go along with it.

18)Tattoo parlor

Getting a tattoo is the latest craze in the public. They have the financial means to get the tattoo of their dreams.

Since there is such a wide range of themes available in this area, you must stay current. In this area, a lot of imagination is also needed.

Another consideration is the importance of hygiene.


In essence, opening a cake shop is a lucrative food retail venture. The company is simple to start and run.

Furthermore, the cake retailing industry is ideal for female entrepreneurs. This company can be started by someone willing to take a small risk (finance).


In general, after home and workplace, people consider the coffee shop to be the third most relaxing place. In addition, the coffee shop is a great place to meet up with friends, family, and even clients and coworkers.

As a result, the market for coffee shops is rapidly growing.

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