Introduction
India’s Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the economy, contributing significantly to employment generation and GDP growth. With government initiatives like Udyam Registration, PMEGP, Mudra Loans, Startup India, and Digital India, starting a business today requires less capital but smarter execution.
If you’re an aspiring entrepreneur, freelancer, homemaker, or job seeker looking to start a business with low investment and high growth potential, this guide is for you.
Below are the Top 10 MSME Business Ideas with Low Investment, carefully selected based on market demand, scalability, profitability, and real-world feasibility in India.
1. Digital Marketing Services
Why it works:
Every business needs online visibility, but many small businesses lack digital expertise.
Investment Required: ₹20,000 – ₹50,000
Skills Needed: SEO, social media marketing, Google Ads, content marketing
Target Clients: Local shops, startups, MSMEs, professionals
Earning Potential: ₹30,000 to ₹2 lakh per month
MSME Advantage: Can be registered as a service MSME with zero infrastructure cost
2. Homemade Food & Cloud Kitchen Business
Why it works:
Rising demand for hygienic, home-style, and regional food, especially in urban areas.
Investment Required: ₹30,000 – ₹1 lakh
Requirements: FSSAI registration, basic kitchen setup
Best Niches: Tiffin services, millet foods, regional cuisines, diet meals
Earning Potential: ₹40,000 to ₹1.5 lakh per month
Trust Factor: High repeat customers if quality is consistent
3. E-Commerce Reselling & Dropshipping
Why it works:
You can sell products online without maintaining inventory.
Investment Required: ₹15,000 – ₹40,000
Platforms: Amazon, Flipkart, Meesho, Shopify
Products: Fashion accessories, home décor, kitchen tools
Earning Potential: ₹25,000 to ₹1 lakh+ per month
Scalability: Very high with branding and private labeling
4. Mobile Repair & Accessories Store
Why it works:
India has over a billion mobile users and constant demand for repairs.
Investment Required: ₹40,000 – ₹80,000
Skills Needed: Mobile repair training (short-term course)
Extra Income: Selling chargers, earphones, covers
Earning Potential: ₹30,000 to ₹1 lakh per month
MSME Benefit: Eligible for Mudra loan support
5. Handmade Products & Craft Business
Why it works:
Growing demand for eco-friendly, handmade, and ethnic products.
Investment Required: ₹20,000 – ₹60,000
Products: Candles, soaps, jewellery, home décor, terracotta items
Selling Channels: Instagram, Etsy, Amazon Karigar
Earning Potential: ₹25,000 to ₹1.2 lakh per month
Export Potential: High with government handicraft support
6. Tuition, Coaching & Online Classes
Why it works:
Education is evergreen, and online learning has expanded reach.
Investment Required: ₹10,000 – ₹30,000
Subjects: School tuition, competitive exams, spoken English, skill courses
Mode: Offline + Online (Zoom, Google Meet)
Earning Potential: ₹30,000 to ₹2 lakh per month
Authority Factor: Builds long-term personal brand
7. Printing & Customized Merchandise Business
Why it works:
Personalized products are popular for gifting and branding.
Investment Required: ₹50,000 – ₹1 lakh
Products: T-shirts, mugs, visiting cards, banners
Clients: Startups, schools, event planners
Earning Potential: ₹40,000 to ₹1.5 lakh per month
Repeat Business: High from corporate clients
8. Beauty Salon or Home-Based Parlour
Why it works:
Personal grooming services have consistent demand.
Investment Required: ₹40,000 – ₹1 lakh
Skills Needed: Beautician certification
Target Audience: Local residential areas
Earning Potential: ₹35,000 to ₹1.8 lakh per month
Women Entrepreneurs: Eligible for special MSME schemes
9. Cleaning & Sanitization Services
Why it works:
Post-pandemic awareness has increased demand for hygiene services.
Investment Required: ₹30,000 – ₹70,000
Services: Home cleaning, office cleaning, sofa & water tank cleaning
Clients: Apartments, offices, hospitals
Earning Potential: ₹40,000 to ₹2 lakh per month
Low Competition: In tier-2 and tier-3 cities
10. Agarbatti & Incense Stick Manufacturing
Why it works:
Consistent demand across religious and export markets.
Investment Required: ₹50,000 – ₹1 lakh
Support: PMEGP subsidy, Khadi & Village Industries Commission (KVIC)
Scale: Cottage to small manufacturing unit
Earning Potential: ₹50,000 to ₹2 lakh per month
Export Scope: Strong international demand
Why Register Under MSME (Udyam)?
Registering your business as an MSME offers:
- Easy access to bank loans & subsidies
- Lower interest rates
- Government tenders preference
- Tax & compliance benefits
- Protection against delayed payments
Final Thoughts
Starting a business no longer requires massive capital—the right idea, skill, and execution matter more. These low-investment MSME business ideas are practical, scalable, and aligned with India’s growing economy.
If you choose wisely, register under MSME, and focus on quality and trust, your small business can grow into a sustainable and profitable enterprise.
