By Kavita Mistry 
Do you wish to start a business but with a tight budget? Worry not—you don’t have to spend a lot to start. There are so many smart and profitable business ideas under 1 lakh Rupees in India that you can start right away.
If you are a college graduate, a home-based mom, or simply tired of the 9-to-5 life, and looking to be your boss, this article is for you. Let us consider the most profitable low-investment businesses that you can start with less than ₹1,00,000.
Best Businesses to Start with 1 Lakh Rupees in India
1. Distribution Business
A distribution business involves supplying products from manufacturers to retailers. It’s suitable for those with good networking skills.
How It Works: You act as an intermediary, purchasing products in bulk and distributing them.
How to Start:
- Choose a product category.
- Establish relationships with manufacturers and retailers.
- Set up logistics for transportation.
Costs:
- Initial inventory: ₹50,000
- Transportation: ₹20,000
- Miscellaneous: ₹10,000
Earnings: Profit margins vary. However, with consistent orders, monthly earnings can be ₹30,000–₹60,000.
Read: Best Wholesale Business Ideas
2. Dropshipping Business
Dropshipping allows you to sell products online without holding inventory. You partner with suppliers who ship products directly to customers. At present, dropshipping is one of the most profitable business ideas under 1 Lakh in India.
How It Works: You list products on your online store. When a customer places an order, the supplier fulfils it.
How to Start:
- Choose a niche market.
- Set up an online store using platforms like Shopify.
- Partner with reliable suppliers.
Costs:
- Website setup: ₹20,000
- Marketing: ₹30,000
- Miscellaneous: ₹10,000
Earnings: Profit margins vary, but with effective marketing, you can earn ₹20,000–₹50,000 monthly.
3. Food Cart Business
A food cart is a mobile, low-investment way of serving popular street foods. It’s ideal for someone who wishes to start small and grow.
How It Works: You prepare and sell food items from a cart stationed at high-footfall areas.
How to Start:
- Choose a niche (e.g., momos, chaat, sandwiches).
- Purchase a food cart and cooking equipment.
- Obtain local municipal clearances.
- Source ingredients and keep hygiene standards.
Costs:
- Food cart: ₹30,000–₹40,000
- Cooking equipment: ₹20,000
- Initial stock: ₹10,000
- Licenses and permits: ₹5,000
Earnings: With quality food and a good location, daily incomes can range from ₹1,000 to ₹3,000, with monthly profits of ₹25,000–₹60,000.
3. Tiffin Service Business
With busy work schedules, most people in towns and cities prefer home-cooked food delivered right to their doors. Tiffin service is a great business venture if you love cooking. It is highly sought after by college students, corporate executives, and elderly people who reside away from their families.
How It Works: You prepare a new batch of dishes in your home kitchen and deliver them on subscription. Consider offering plans on a daily or weekly basis and specialising in regional or health-based meals.
How to Start:
- Design a small menu
- Buy containers and packaging
- Promote on WhatsApp, local classifieds, and Zomato/Swiggy (if possible)
Costs:
- Cooking utensils and packaging: ₹20,000
- Monthly groceries: ₹30,000
- Marketing & transport: ₹10,000
Earnings: You can earn ₹30,000–₹60,000 per month, depending on how many customers you serve.
4. Handmade Candle Business
Handmade candles are popular for décor, gifting, and relaxation. People love scented candles for home use and festivals. This business can start at home with basic equipment and a low investment.
How It Works: You create different types of candles, like jar candles, designer candles, and scented ones. You can sell them online, at local exhibitions, or through gift shops.
How to Start:
- Learn candle making from YouTube or a short course
- Buy moulds, wax, wicks, and fragrances
- Design attractive packaging
Costs:
- Raw materials and tools: ₹25,000
- Packaging and labelling: ₹10,000
- Marketing: ₹5,000
Earnings: If you sell 200 candles a month with ₹100 profit per candle, you can make ₹20,000 easily. With good branding, this can grow fast.
5. Mobile Repairing Business
Mobile phones are everywhere, and so is the demand for repairing them. A mobile repair business is easy to start and can bring high returns with an under 1 lakh.
How It Works: You fix broken screens, battery problems, and software issues. You can offer services from a small shop or even from home.
How to Start:
- Take a mobile repairing course (1–2 months)
- Buy basic tools and spares
- Promote your services in your area
Costs:
- Course and tools: ₹30,000
- Rent (if needed): ₹10,000
- Marketing: ₹5,000
Earnings: You can earn ₹500–₹1,000 per repair. With 4–5 jobs a day, the monthly income can cross ₹40,000.
6. Organic Vegetable Farming
People are becoming more health-conscious, and organic vegetables are in demand. If you have access to a small piece of land, organic farming can be a profitable business.
How It Works: You grow chemical-free vegetables and sell them directly to consumers or to local shops.
How to Start:
- Learn organic farming methods
- Choose high-demand vegetables
- Sell through WhatsApp groups, online shop, farmers markets, or home delivery
Costs:
- Seeds, compost, tools: ₹40,000
- Labour and transport: ₹10,000
Earnings: Even with a small plot, you can earn ₹30,000–₹50,000 per month by selling fresh organic produce.
7. Tailoring and Boutique Services
Tailoring is a business that never goes out of style, especially in India, where custom clothes are still in demand. Whether it’s daily wear or festive outfits, skilled tailoring can make you good money.
How It Works: You stitch clothes, do alterations, or design outfits. You can also add embroidery and blouse stitching services.
How to Start:
- Buy a good sewing machine
- Take a tailoring course if needed
- Promote locally and through social media
Costs:
- Sewing machine: ₹20,000
- Materials and accessories: ₹10,000
- Marketing: ₹5,000
Earnings: You can earn ₹50 to ₹500 per garment. With a regular client base, monthly income can easily reach ₹25,000–₹50,000.
8. Customised Gift Box Business
People love gifting unique items for birthdays, weddings, and festivals. Customised gift boxes are trending, especially among millennials. You can start this creative business from home.
How It Works: You design and assemble gift boxes using curated items like candles, chocolates, keychains, notes, etc., based on the theme or occasion.
How to Start:
- Source affordable items in bulk
- Design attractive boxes and branding
- Promote via Instagram and WhatsApp
Costs:
- Raw materials and packaging: ₹30,000
- Branding and samples: ₹10,000
- Social media ads: ₹10,000
Earnings: You can earn ₹200–₹500 per box. With regular orders, monthly income can go up to ₹60,000 or more.
9. Digital Marketing Freelancer
Digital marketing is booming, and every business needs an online presence. If you are good at writing, SEO, social media, or ads, this can be a rewarding business.
How It Works: You offer services like content writing, SEO, social media management, or ads to small businesses and startups.
How to Start:
- Take online digital marketing courses
- Build a portfolio by offering free or low-cost services
- Use LinkedIn, Upwork, and freelancer sites to get clients
Costs:
- Courses and tools: ₹20,000
- Laptop and internet: ₹30,000
- Website or personal brand: ₹10,000
Earnings: Freelancers earn ₹10,000–₹1 lakh per month, depending on skills and clients.
10. Incense Stick (Agarbatti) Manufacturing
Incense sticks, or agarbattis, are widely used in Indian households for religious and aromatic purposes. The demand for agarbattis remains steady, making it a viable small-scale business under a budget of 1 lakh Rupees.
How It Works: You produce incense sticks by mixing charcoal powder, wood powder, and fragrance oils, then rolling them onto bamboo sticks.
How to Start:
- Acquire basic machinery or opt for manual production.
- Source raw materials like bamboo sticks, charcoal powder, and essential oils.
- Obtain necessary licenses and register your business.
Costs:
- Raw materials and equipment: ₹30,000–₹40,000
- Packaging and branding: ₹10,000
- Miscellaneous expenses: ₹10,000
Earnings: With consistent sales, you can earn ₹20,000–₹40,000 monthly, depending on production volume and market reach.
11. Customised Phone Cover Business
Customised phone covers are popular among the youth for personal expression. This business caters to the demand for personalised accessories.
How It Works: You design and print custom graphics on phone covers using specialised printers.
How to Start:
- Invest in a heat press machine and printing equipment.
- Create unique designs or offer customisation options.
- Market your products through social media and e-commerce platforms.
Costs:
- Printing equipment: ₹50,000
- Initial inventory: ₹20,000
- Marketing: ₹10,000
Earnings: Selling 10 covers daily with a ₹100 profit each can yield ₹30,000 monthly.
12. Tea Shop (Chai Stall)
Tea stalls are ubiquitous in India, serving as social hubs. A well-placed tea stall can attract a steady stream of customers throughout the day.Khatabook
How It Works: You serve various types of tea and light snacks to customers from a small stall or kiosk.
How to Start:
- Select a high-traffic location near offices, colleges, or markets.
- Set up a stall with basic equipment like a stove, utensils, and seating.
- Source quality tea leaves and ingredients.
- Maintain cleanliness and consistent taste.Franchise Bhoomi
Costs:
- Stall setup: ₹20,000–₹30,000
- Equipment and utensils: ₹10,000
- Initial inventory: ₹10,000
- Licenses and permits: ₹5,000
Earnings: Selling 200 cups daily at a profit of ₹5 per cup can yield ₹30,000 monthly.
13. Jewellery Making
Handmade jewellery is in demand for its uniqueness. This business suits creative individuals, and is one of the most lucrative business ideas under 1 lakh.
How It Works: You craft jewellery using materials like beads, wires, and stones.
How to Start:
- Learn jewellery-making techniques.
- Source quality materials.
- Sell through online marketplaces and local exhibitions.
Costs:
- Tools and materials: ₹30,000
- Branding and packaging: ₹10,000
- Marketing: ₹10,000
Earnings: Depending on pricing and sales volume, monthly earnings can range from ₹25,000 to ₹60,000.
14. Spice Mixes Business
Spice mixes are essential in Indian cooking. You can offer unique blends of spices that can attract a loyal customer base.
How It Works: You create spice blends, package them attractively, and sell them.
How to Start:
- Develop recipes for spice mixes.
- Source quality spices.
- Comply with food safety regulations.
Costs:
- Raw materials: ₹20,000
- Packaging: ₹15,000
- Marketing: ₹15,000
Earnings: With consistent sales, you can earn ₹30,000–₹50,000 monthly.
15. T-Shirt Printing
Customised t-shirts are popular among all age groups. This business caters to the demand for personalised apparel and can be started by investing 1 lakh in India.
How It Works: You print designs on t-shirts using screen printing or heat transfer methods.
How to Start:
- Invest in printing equipment.
- Create unique designs or offer customisation.
- Market through social media and online stores.
Costs:
- Printing equipment: ₹40,000
- Initial inventory: ₹30,000
- Marketing: ₹10,000
Earnings: Selling 10 t-shirts daily with a ₹100 profit each can yield ₹30,000 monthly.
Read: How to Start an Online T-Shirt Business from Home
16. Event Management
Event management involves planning and executing events like weddings, parties, and corporate functions.
How It Works: You coordinate with clients, vendors, and venues to organise events.
How to Start:
- Gain experience or take a course in event management.
- Build a network of vendors.
- Promote your services through a website and social media.
Costs:
- Marketing and branding: ₹30,000
- Office setup: ₹20,000
- Miscellaneous: ₹10,000
Earnings: Earnings vary per event, but successful planning can lead to ₹50,000–₹1,00,000 monthly.
17. Laundry Service
With busy urban lifestyles, many people are more and more looking for convenient laundry solutions. A laundry service can cater to this need, offering washing, drying, and ironing services.
How It Works: Customers drop off their laundry, which you clean and return within a stipulated time.
How to Start:
- Set up a small space with washing machines and ironing equipment.
- Offer pickup and delivery services to add convenience.
- Hire staff if necessary and train them in fabric care.
- Promote your services through local advertising.
Costs:
- Washing machine and equipment: ₹50,000
- Shop rental and setup: ₹20,000
- Marketing: ₹10,000
- Licenses and permits: ₹5,000
Earnings: Serving 10 customers daily with an average bill of ₹100 can result in monthly earnings of ₹30,000, with profits depending on operational costs.
Read: Best Retail Business Ideas with High Profit
18. Freelance Content Writing
If you’re good at writing, you can earn without any inventory. Many businesses need blog posts, social media content, and website copy.
Why It Works: You can work from anywhere (home, café, co-working space). Only the internet and a computer are needed.
How to Start:
- Create samples (write free blogs to build a portfolio)
- Join Upwork, Fiverr, LinkedIn
- Offer SEO writing for better rates
Earnings: ₹15,000 – ₹1 lakh/month (depends on skills)
Conclusion:
Starting a business in India for ₹1 Lakh is not just feasible but can also be very profitable. By choosing the right niche, understanding your audience, and delivering quality products or services, you can make a sustainable business. Remember, consistency, customer service, and flexibility are the keys to long-term success.