15 Best Manufacturing Business Ideas In India

Most times what manufacturers do consider is the population index of a particular area before they embark on manufacturing for such area. for this reason, we have put together the best manufacturing business ideas in India.

Talking about India

Today, India ranks as the second-largest country in terms of population and landmass, this is a formidable ground for a prospective manufacturer to plant his manufacturing base.

In India today, there is various mean through which you could earn money through manufacturing. Therefore, in this article, we would be giving you the best manufacturing business ideas in India.

 How Manufacturing Operates in India

The scope of goods and services manufacturing in India is extensive, as it is one of the major sectors boosting the Indian economy. Though the economy and nation are fraught with a few challenges, according to HBR

While there is no single formulaic answer to manufacturing success in India, patience and a trusted local partner or advisor to guide western executives’ efforts are necessary — as well as an understanding of the challenges.

One of these challenges is the acquisition of land for the manufacturing site, where this is overcome, it then remains patient and consistent. 

The manufacturing sphere in Indian though cannot be said to go toe to toe with its neighbor China, it however has a viable prospect coupled with the nations ‘make in India policy.

How manufacturing works in India, is taking textile manufacturing, for example, this industry is known as the largest producer of employment in the country.

Coupled with the diversification of the industry into handicraft textiles, beddings, organic cotton, sports wears, backpacks, and coated wear among other branches.

The country’s large population of engineers also makes room for specialized production techniques such as fabric dyeing, laser cutting, embroidery, and pleating, etc.

Not only that, according to Sourcify.com, Textile suppliers are not only diversified in specializations, but also in reputation.

For example, the Arvind Mill factory is known for manufacturing high-quality knits and denim and has won a variety of certifications and awards for sustainability. Organic & More is known for producing 100 percent organic products.

Therefore, as an eCommerce retailer, you are sure to find a supplier that can meet your production needs and quality demands.

Why Start Your Manufacturing Business Idea In India

The benefits of moving your manufacturing business idea to India cannot be ignored or understated.

Below are some of the reasons why you should consider India in your list of investment countries with respect to manufacturing.

  • Cheap labour: compared to other Asian countries such as Vietnam and China, India has the cheapest labour in relation to goods production, this is factored Majorly by its massive population, and every manufacturer knows the effect of cheap labour in production.
  • Ease of communication: it is easier to overcome the language barrier in India, because its official language is English, and the rate of finding a manager or worker that understands English is higher in India than in any other Asian country.
  • Favourable government policy: 100% FDI (automatic route) is allowed in textiles.

Read this: How To Start A Photography Business In 2022

15 Best Manufacturing Business Ideas In India

Having stated the above information, we would be listing the best 15 manufacturing business ideas you could implement in India.

  1. Milk and dairy manufacturing
  2. Bakery
  3. Spice powders production 
  4. Mobile phone accessories 
  5. Leather products manufacturing
  6. Manufacturing of roofing materials
  7. Manufacturing detergent and house cleaning agents
  8. Fabrics and textile manufacturing
  9. Toys manufacturing
  10. Plastic products manufacturing
  11. Pharmaceuticals and medical products.
  12. Disposable items manufacturing.
  13. Organic fertilizer manufacturing
  14. Candle stick manufacturing
  15. Sanitary pads production.

#1. Condensed milk manufacturing

Condensed milk manufacturing is one of the best manufacturing business ideas in India.

India with its population, there are the highest producers and consumers of milk and dairy products in the world, producing over 187 million tonnes of milk, followed by the United States.

Even at that it still possesses the potential to expand. So if you desire to engage in milk production, India would be a top area to consider. India’s milk per cow production is of a reasonable quantity.

Another benefit to it is that they also produce their milk from water buffalos too as against the United States who the only source is from cows.

Furthermore, the country does not favor the import of dairy and milk products, this is evidenced by the high tariffs imposed on milk and dairy imports.

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Another thing to consider is that in case you desire to start your own mill farm, then look out for the cross-bred cows because according to Wikipedia.

Indigenous cows produce about 3.73 kilograms (8.2 lb) of milk per day, compared to 7.61 kilograms (16.8 lb) per day for cross-bred cows and 11.48 kilograms (25.3 lb) per day for exotic cows.

However, according to some experts, the milk of indigenous cows have higher nutritional value and thus their declining population can have long-term health and environmental effects

The only downside to milk manufacturing in India is the fact that most states prohibit the slaughter of dry cows. 

Also, the Milk and Milk Products Order (MMPO) issued under this act in 1992 is still in force, and requires any person handling more than 10,000 liters of milk to register with the Central and State Governments

#2. Bakery In India

Another prospective industry to explore is the bakery industry, second to China, India is the highest producer of processed food, this includes pastries too. And with its expanding agricultural domain, there is the hope of an increase in the rate of production.

This is another manufacturing business idea in India

In India, the bakery industry can be broken down into three; bread, biscuit, and cakes. In total, this industry produces over 1.3 trillion tonnes of products yearly. 

There are various scales of production ranging from small/ household scale to large scale production so there is diversity in this industry.

You can either favor one out of the three categories. And these are the required licenses to put in place before commencing production: Local Municipal Corporation Health License, Police Eating House license, FSSAI license, GST Registration, and the Fire License

Also according to Bizencyclopedia, the India Cake market is forecasted to reach US$ 882.24 million by 2024 growing at a CAGR of 12.5% during the forecast period from 2019 to 2024.

As the consumption of cakes is gaining market traction, owing to consumers’ changing perceptions, as well as their convenience and health attribute, leading to a rise in popularity of on-the-go cake products, which are baked off or made at the convenience of the consumer.

#3. Spice powder manufacturing.

The Indian nation really has enough potential to be among the top manufacturers in the world. So, starting a spice powder manufacturing business is a great idea in India.

They are the largest producer, consumer, and exporter of spices; the country produces about 75 of the 109 varieties listed by the International Organization for Standardization (ISO) and accounts for half of the global trading in spices.

Major spice produced in India includes chili, mint products, spice oils & oleoresins, cumin, turmeric, pepper, curry powder/paste, cardamom seeds, other spices like Tamarind, Asafoetida, and Cassia, and Garlic. 

Production of spice in India is subject to the Spices Board of India. The Spices Board of India works towards the development and worldwide promotion of Indian spices.

It provides quality control and certification, registers exporters, documents trade information, and provides inputs to the central government on policy matters.

The board participates in major international fairs and food exhibitions to promote Indian spices, apart from organizing various domestic events.

Spices export value stood at US$ 3.65 billion in FY20 courtesy of Ibef.org

#4. Mobile phone accessories production.

Just like the fabric market, phone accessories production units also vary. For example, there are different components on the mobile phone that often require changing from time to time, such as earphones, phone casings, batteries, chargers, and a whole lot of things.

Having listed these are a few things to have in mind before taking that step. According to Quora, The unique selling point in this product will be the creativity of the artwork…

The manufacturing process for every company is more or less the same, so innovation in this particular field is not that effective.

So just stick to the most used process as you will also get the machine at a lower cost(mainly injection molding machines are used for the process).

As soon as you start your manufacturing start tapping popular selling platforms such as Flipkart, amazon, snapdeal, etc.

#5. Leather products manufacture

This includes a diversity of the following commodities clusters like leather finished goods, leather garments leather footwear, saddler, and harness.

Footwear and leather garments in the world, India is the second-largest exporter of leather garments in the world and the fifth-largest exporter of leather goods & accessories in the world leather products and Footwear industry achieved 63.5% of export performance in dollar terms, during the past month and years

While the Leather industry in India accounts for around 12.9% of the world’s leather production of hides/skins and handles a robust annual production of about 3 bn sq. ft. of leather.

The country accounts for 9% of the world’s footwear production. The industry is known for its consistency in high export earnings and it is among the top ten foreign exchange earners for the country.

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India has an abundance of raw materials with access to 20% of the world’s cattle and buffalo and 11% of the world’s goat and sheep population.

The major markets for Indian Leather & Leather Products are the USA with a share of 17.22%, Germany 11.98%, U.K 10.43%, Italy 6.33%, France 5.94%, Spain 5.01%, Netherlands 3.52%, U.A.E 3.35%, China 2.61%, Hong Kong 2.15%, Belgium 2.21% and Poland 2.11%.

With the statistics above, the prospects of leather and allied products manufacturing in India would’ve lucrative and efficient due to the accessibility of raw materials and labor. 

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#6. Roofing materials manufacture.

Infrastructural development in India is presently gaining traction, industrial and residential buildings are currently on the rise, and with these buildings comes the need to roof them.

Examples of roofing materials that may be produced in India include laminated asphalt shingles, roofing tiles, and metal products.

The metal product includes zinc and aluminum, which is a shift from the traditional asbestos sheets and steel sheets.

Aesthetics, superior technology, durability, thermal efficiency are some of the significant driving factors for Zn-Al coated sheets.

Performance of 150 GSM Zn-Al coated material is four times longer than 275 GSM Zn coated material. The drive for these materials is influenced by the desire for aesthetics, durable products, and exotic designs.

#7. Detergents and house cleaning agents.

In a country such as India, the need for surfactants and cleaning agents cannot be denied. Its large population is also a welcome market for this type of industry. 

These include soaps, detergents, floor cleaning agents, cleaning powders, etc 

Entrepreneurs in India provide branches that you can explore in soaps and detergent making.

 #8. Fabrics and textile manufacturing.

This is another manufacturing business idea in India you can venture into. After agriculture in India, the textile industry is the largest provider of employment with 35 million direct employees in this sector of both skilled and unskilled labor.

Obviously, government policies would favor any effort to maintain this status, such as the ‘Make in India policy.”

 India also majors in jute and cotton production. And their main customers are United States, United Kingdom, and Canada among other countries.

This industry is governed by the Ministry Of Textile and Industry established in the year 2000.

These are favorable information for the establishment of the fabrics and textile manufacturing business in India. You can diversify into cloth making, towels, beddings e.t.c.

#9. Toy manufacturing in India

Another industry with prospects in India is the toy industry. We are accustomed to the fact that not only children get toys these days. Even adults these days get to receive them too.

According to Investindia, The toys industry in India has the potential to grow to $2-3 bn by 2024. The Indian toy industry is only 0.5% of the global industry size indicating a large potential growth opportunity.

The domestic toy demand forecasted to grow at 10-15% against the global average of 5%…There will be a 2.5x increase in income per capita from 2016 to 2027

There will be a 1.2x increase in the proportion of affluent and elite consumers in Tier 2 & Tier 3 cities by 2025. 80% of the population will belong to Gen ‘I’ by 2027

Though India’s share in the global manufacture of toys is low, and the majority of its toys are imported, it has a bright future ahead with proper investments and consistency.

#10. Plastic products manufacture

The rate at which the plastic industry is growing is quite commendable, being one of the highest in the whole world. At more than 16% per annum. 

Though having a large population, it is not advisable to hole in the labor force, as some companies have complained about a shortage of labor. This toeing the line of mechanization would be more profitable and better to err on the side of surplusage.

Another area to prepare for is the power sector, as there is a deficit supply of electricity in India too making provisions for alternative and cost-effective power supply would be economic too.

Apart from the shortage of skilled labor, the plastics industry is also facing the problem of a nationwide power deficit. The electricity demand deficit is 12-13 percent. 

It is estimated that between 75-80% of Polypropylene demand in India is met by Reliance Industries with around 20% coming from four Government-run companies Indian Oil Corporation Ltd (IOCL), Haldia Petrochemicals, Bharat Petroleum Corporation LTD (BPCL), and the Gas Authority of India Ltd (GAIL). 

Also, factors influencing this industry are the complementary growth of the automobile and construction industry.

#11. Pharmaceuticals and medical products 

The health industry is ever as lucrative as it can get, with the quest for proper and longer life. Expectancy, the use of drugs has proportionally accelerated.

In this industry, you can decide to manufacture medical disposables such as syringes, cotton swabs, etc or into biotechnology. 

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No matter the area, there is guaranteed profit. Research conducted in 2021 by the Indian Economic survey, the home market is expected to increase 3 times in the next 10 years.

In 2021, it is estimated at USD$ 42 billion and most likely to enter the threshold of USD$65 billion by 2024 upwards 

India’s biotechnology industry comprising biopharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics.

The Indian biotechnology industry was valued at US$ 64 billion in 2019 and is expected to reach US$ 150 billion by 2025.

India’s drugs and pharmaceuticals exports stood at US$ 17.57 billion in FY21 (From December 2020 to April 2021). 

#12. Disposable items manufacturing.

There is a high chance of celebrations occurring in the country coupled with the festive periods too. In instances as this, people often tend to avoid the stress of cleaning up, and as such use more disposable items rather than reusable ones.

These items come in form of disposable plates, spoons, cups. This drive is fueled by several factors such as hygiene, development in the food sector, increase in disposable income, and the concept of recycling.

In India, there are basically two types of hot and cold paper cups. Considering the case of global pollution, and indiscriminate dumping of plastics on the environment, the government has advocated and laid down policies that would sour the production and usage of paper-based disposables.

This industry reached a volume of about 265 billion units in 2020. The market is further expected to grow at a CAGR of 2% between 2021 and 2026 to reach a volume of about 295 billion units by 2026

#13. Organic fertilizer manufacturing

This is one of the manufacturing business ideas in India you can think of and venture into. With a large agricultural base, there is no need to say that the fertilizer industry would also have a chunk out of it.

With the advent of urbanization, the available rate of arable land is on the decrease, and this would be the alternative in pursuing better crop production.

Also, irrespective of the increase in past years, the domestic usage of fertilizers is low compared to other countries.

Thus from the foregoing, even where there is a low domestic usage or market for the products, you can always explore beyond the shores of India.

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#14. Candle Making

For a country as religious as India, the love for candles cannot be denied. This market is always in demand all year round. This is one of the manufacturing business ideas in India.

Order than the traditional white candle, there is a sizeable market for other types of candle, such as the scented and colored candle. 

This business doesn’t cost much to start, its raw material ( wick and wax) is easily obtainable, and cost-effective too. Things to consider in general include:

Obtaining a trade license or business name registration, when it would be a large scale and mold for your candle.

Moreso, a candle-making machine. This may be a manual, semi-automatic, and automatic candle-making machine.

#15. Sanitary pads production

This is another area that would need exploration. Considering the fact that the majority of women in India lack access and knowledge about sanitary hygiene.

First, a massive sensitization by way of an advert should be on your list when considering this line of production.

According to PRNewswire, Out of the 365 million menstruating women in India, only ~18% of them use sanitary napkins, and the rest ~82% of them, living in semi-rural and rural India, use unhygienic products like newspapers, cloths, rags, dried leaves, plastics, and wood shavings during menstruation.

Also in India, approximately 60% of women are diagnosed with vaginal and urinary tract diseases and infections every year due to poor menstrual hygiene.

Growing awareness about intimate hygiene and an increase in preference for sanitary products like tampons and panty liners have garnered a huge demand for feminine hygiene products in the country.

The entry of new players and start-ups is expanding the feminine hygiene products market in India.

Thus you should also consider a more easily accessible distribution channel if your initial sensitization is to yield returns.


It is a fact that a vast market is always welcome news to a manufacturer, and in this context, India qualifies in every ramification as a goods setting for the above-listed business ideas.

Other benefits as listed earlier are its diminutive language barrier scale with the government’s enthusiasm in making favorable policies for manufactures. 

Thus we dwelled on its population and other factors to proffer that  India should be on your list when considering expanding your business horizon.



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