Most Profitable Business in India 2021

A growing economy like India’s has a world of opportunities for aspiring Indian entrepreneurs. Here are 10 segments that are attracting the most newcomers given their high potential to become a profitable business in India:

1. Insurance

The potential for selling insurance in India is such that many working professionals sell insurance policies on the side. Reports show that insurance is a booming industry. The insurance industry in India is expected to reach US$ 280 billion by the end of 2020. The life insurance industry in the country is expected to grow 12-15% annually over the next three to five years.

Insurance is also being made into a compulsion by companies for health, vehicles, electronics, etc. And this has resulted in many big companies in the country investing in insurance-related services.

Car insurance, general insurance, life insurance, mediclaim insurance, are some of the types of insurances most Indians are buying. Companies are being smart and even turning insurance into investment assets. Therefore, many professionals are becoming insurance agents and earning high commissions. Several folks have turned it into a full-time business. This makes selling insurance one of the best business to start in India, today.

2. Travel Agency

India is a popular tourist destination. According to the World Travel and Tourism Council (WTCC), India ranks 10th in the world for travel & tourism. Travel in India has witnessed a massive surge in the past decade thanks to cost-effective, home-based travel agencies. This is a relatively easy business to start, manage, and grow. These attributes make it a highly profitable business venture for many, especially for the folks in the work-from-home sector

Such businesses, powered by technology and communications, allow people to be spontaneous and make quick travel plans. You can even tie-up with established brands to increase capacity and profits. The higher the qualitative engagement you can provide, the more profitable your travel business will be.

3. Cloud Kitchen

Selling food online is arguably the best profitable business in India. Thanks to social media, today you and I can market products with great ease. If you have a reasonable flair for cooking and a smartphone, nothing can stop you from running a successful business.

All you need to have is a cloud or dark kitchen setup, and tie up with food delivery services like Swiggy, Zomato, or Dunzo. It just takes three simple steps, and you will be able to set up an online store in just about 30 seconds! Several home-makers today can successfully prepare and sell home-cooked meals. Technology is helping them with turning their passion for food into a profitable business in India.

4. Website Design & Development

With eCommerce leading the way, a website has almost become a must-have for all businesses today. We are not talking about just an ordinary website here. If you wish for your business to stand out from the clutter and your competitors, you need to have a unique and engaging website that speaks to your audiences. According to Adobe, around 48% of people surveyed said that the design of a website was a key factor in understanding a business’s credibility.

A web design & development business is a highly profitable business that finds instant customers. Companies and businesses have realized the importance of a strong online presence. Therefore, if you can offer these services, you can run a successful and profitable business.

5. Organic Farming Business

Many people are resorting to a healthy lifestyle to balance out the demerits of the fast-paced life we are all living. Food and diet have started to play a key role with the ‘young urbans’. Consequently, there is a newfound appreciation for organic food.

Organic food is food that is grown and harvested most naturally – using natural fertilizers and no chemicals. Many brands, today, have started sourcing directly from organic farmers helping them make higher margins as there are no middlemen involved. How and where do you start? You could either invest in farmland and cultivate organic food, package, brand it and sell it online or source organic produce directly from the farmers which can be then packaged, branded, and sold.

The best part is if you know the basics of organic farming and smart ways to use space efficiently, a terrace garden is all you need to kick-start. Many organic farmers share their learnings, tips, and hacks on YouTube. Identifying the right channels to learn from is no more a challenge these days. It is as simple as a google search!

The organic food business has taken off so much that many Indian brands have already made their way overseas.

6. Tuition Classes

Tuition classes are an excellent, cost-effective business option that has a wider market reach and gives high profits. All you need is subject matter expertise, patience and time to teach effectively, a whiteboard or a surface to write, and some space. Today, you can also teach online thanks to technology platforms like Zoom and Google Meet, making online coaching a highly profitable business opportunity.

The pandemic has helped coaching centers earn huge profits, by transitioning to teaching online thereby cutting down on the time and fuel expenses taken to commute. The online format is something that is going to continue for a long time, making tuition classes an ideal business for profitability. If you have the expertise and a love for teaching, you can turn your passion into a profitable business in India.

7. Dropshipping

Dropshipping is similar to retailing, but with a difference. All you need to do is open an internet store where you can take orders. To complete the order, you purchase the product from the wholesaler, who then distributes it to the clients. You are not required to store or handle the merchandise in any way. This is a fantastic business strategy that is gaining traction.

8. Interior Design Business

Interior designing is a fast-growing business in India. The interior design market in India is estimated at $20 – $30 billion. This can be attributed to the constant growth of the real estate market, rising income, growing population, and urbanization.

If you have a flair for doing up spaces and a taste in aesthetics that is well appreciated by people around you, you could consider setting up a formal interior design business. With TAXAJ, you could start this business and it could be a sole proprietor or a Pvt Ltd. business.

Today there are multiple short and long-term courses available online and offline to hone your designing skills. A professional certificate always helps bring more credibility to your business. With online course curators like Udemy and Coursera, one has a plethora of options when it comes to specialized and certified courses.

Factors like smart homes, social media influence, and lifestyle changes have led to a huge demand for interior designers. If done creatively and uniquely, this business with low investments could soon yield you good profits.

9. Furniture Making

If aesthetics is your game, the furniture business might make you a winner! Thanks to images over platforms like Instagram and Pinterest – everybody aspires to own one of those pretty looking houses and farmhouses you see while randomly scrolling. The easiest way people are realizing their dream house is by upgrading their spaces with new and multipurpose furniture.

With work from home being the new normal – people are investing more in enhancing their living and working spaces – making furniture business, quite clearly, an in-demand one. You may either choose to manufacture it yourself or buy it from a wholesaler.

Talking about the trends in furniture, multi-purpose, smart, unique furniture is in demand. These types of furniture serve multiple purposes, take up less space, and are essential not only at homes but in offices as well. Given the versatility and popularity, it makes for a profitable business idea in the present context.

10. Co-working Spaces

Yet another trend that is catching on is co-working spaces. A few years back, nobody would have thought that co-working spaces would make a lucrative business in India. But in the new normal, people are putting their vacant spaces to good use and are turning those into co-working spaces.

Many start-ups and small businesses don’t have the capital to invest in renting large commercial office spaces. The closest they can be to an office space without compromising on the professional settings is renting a co-working space. If you have some space vacant in your home, this could be a profitable business opportunity. All you need to make sure is that the leased out spaces are equipped with office furniture, internet, pantries, and conference spaces, to make working seamless.

With the pandemic and the consequential inward-out migration, the ‘plug & play’ co-working space business model is here to stay.

11. Wedding Planner

Are you awesome at managing events? Do you enjoy planning for the smallest of the events in the most elaborate manner? Do you have an eye for details? Being organized and punctual are synonymous to you? If you answered yes to all the questions – you could make a successful event/wedding planner!

Is there a demand? you may ask. Today weddings are so elaborate and fairytale-like that it takes an expert event manager to organize them well. From the pre-wedding shoots to the ‘bidai’ ceremony, wedding planners are the ones who turn the whole event into an envious, memorable saga.

What’s even better? There is no recession in the marriage business!

Jokes aside, if you derive happiness from the success of a well-planned and organized event – there is no going wrong here. What you need to get this business up and running is a good network of trusted vendors and a reliable team as passionate as you. Get your wedding/event planning service up with TAXAJ and you can get started right away. There are hardly any monetary investments making it even more profitable!

Additional Opportunities

Below are some additional business opportunities that are flourishing and have the potential to become a profitable business in India:

• Digital Marketing Services
• Content Writing
• Home-based Catering
• Online Yoga or Dance Classes
• Medical Courier Service
• Online Clothing Store
• App Development
• Tax & Accounting Services

Tips to Have The Best Business in India

Start with a solid business plan

Making a well-thought-out business plan will help you understand the nitty-gritty of your business. It will also help you understand the market and competitors better so that you can zero in on what you need to do in order to build and run a successful, profitable business.

Know your market

The Indian market is largely made up of many collections of smaller markets. Each market has its own approach to attract the intended customers. Having a niche will attract specific customers and help you achieve desired sales numbers. The online market is a paradise of opportunities.

As we learn to thrive in a pandemic-hit world, growing your business online is an inevitable tactic. Here’s a guide that may help you understand how to sell online.

Embrace a positive business culture

The Indian market runs on business relationships. Building a positive rapport and trust, first, is a sure-fire way to get your business out there and help it thrive. Though this takes time and effort, it is an important part of growing your business and turning it into a profitable source.

Keep upskilling

When you are running a business, there is never enough learning. Keep learning new skills. The Indian market is a dynamic one and keeps evolving at a steady pace. To make the most out of it, one needs to evolve with the market, by upgrading one’s skills. A decade ago, businesses didn’t need to market their products across multiple channels – but today it is essential for a brand to market products on as many social media channels to stay ahead on the growth curve.

Ace the marketing game

A business is only as successful as its marketing. However good your business is, it will be futile if one fails to market it well. As a business owner, you need to continuously reach out to a wider audience while retaining your existing customers. This is where a robust marketing plan comes in handy. One of the most common ways to market your product is to set up an online store.