Best Business Under 1 Lakh: Big Dreams, Small Budget

Best Business Under 1 Lakh: Big Dreams, Small Budget

By Charu Gupta   Published:   May 5th, 2025


Starting a business in India doesn’t always need huge investments. With rising inflation, job competition, and a strong “vocal for local” movement, many Indians are looking for low-investment, high-return ideas that can cater to the best business under 1 lakh. If you’re one of them, this blog is made for you.

Whether you are a student, homemaker, retired person, or an aspiring entrepreneur, here are 10 of the best business ideas under ₹1 lakh that are practical, profitable, and perfect for the Indian market in 2025.

1. Tiffin Services (Home-Cooked Food Delivery)

Initial Investment: ₹15,000 – ₹40,000
Why It Works: With students, office-goers, and bachelors needing healthy home-cooked meals, the demand for tiffin services is rising in both metro cities and small towns. You can start small in your neighborhood, then expand via word-of-mouth and local housing societies.


What You Need:

  • A clean kitchen setup
  • Food containers
  • Local delivery tie-ups (Swiggy Genie, Dunzo, etc.)
  • WhatsApp or Instagram marketing

2. Paper Plate & Disposable Products Making

Initial Investment: ₹50,000 – ₹1,00,000
Why It Works: Demand for eco-friendly, disposable plates and bowls is booming due to events, street food, and the ban on plastic. Sell directly to sweet shops, caterers, or via local WhatsApp groups. This can definitely lead you towards starting a best business under 1 lakh.


What You Need:

  • A semi-automatic paper plate machine (₹35,000 – ₹60,000)
  • Raw materials (paper rolls)
  • Local vendor and wholesale connections

3. Mobile Recharge & Bill Payment Shop (Mini CSC Center)

Initial Investment: ₹20,000 – ₹50,000
Why It Works: In every town and village, people need help with recharges, bill payments, and government services.Add services like PAN card application, Aadhar updates, or online form filling for extra income.


What You Need:

  • Laptop/PC + Internet
  • CSC registration or service aggregator tie-up
  • Recharge software, printer & biometric device

4. Customized Gift Printing (Mugs, T-Shirts, etc.)

Initial Investment: ₹40,000 – ₹1,00,000

Why It Works: Gifting culture has always been thriving in India—birthdays, weddings, festivals. Collaborate with local gift shops or sell through Instagram & Meesho.


What You Need:

  • Heat press machine
  • Blank T-shirts, mugs
  • Basic design skills (Canva/CorelDraw)
  • Instagram page or online store

5. Tuition or Coaching Classes (Offline or Online)

Initial Investment: ₹5,000 – ₹25,000
Why It Works: Education is recession-proof. Every Indian parent wants a good tutor for their child. Start with school subjects, spoken English, or even entrance coaching. This can lead you towards curating a profitable & best business under 1 lakh.


What You Need:

  • Teaching space at home or online setup
  • Basic stationery and whiteboard
  • Marketing in your local area or online platforms like UrbanPro

6. Homemade Snacks or Pickles Business

Initial Investment: ₹10,000 – ₹30,000
Why It Works: Indians love homemade papad, achaar, and namkeen. Many people prefer preservative-free options over branded snacks. Focus on unique regional flavors and hygienic packing.


What You Need:

  • Basic kitchen setup
  • Packaging materials
  • FSSAI registration (for scaling)
  • Instagram, WhatsApp Business, or BigBasket listing

7. Second-Hand Mobile & Accessories Reselling

Initial Investment: ₹30,000 – ₹1,00,000
Why It Works: Many people in India prefer refurbished phones due to rising smartphone prices. Add mobile covers, screen guards, and chargers for extra income. This best business under 1 lakh can yield better results if executed at the right location. You can also use a cost-friendly mobile shops and accessories billing software for better operations.


What You Need:

  • Tie-up with mobile repair shops or OLX sellers
  • WhatsApp Business for customer interaction
  • Small kiosk/shop or online delivery model

8. Freelance Services (Writing, Design, Digital Marketing)

Initial Investment: ₹10,000 – ₹50,000 (for courses/laptop)
Why It Works: India is a digital talent hub. You can earn from Indian or international clients from home. Start by offering services to local businesses to build experience and reviews.

 What You Need:

  • Skill in a digital domain (writing, SEO, social media, graphic design)
  • Fiverr, Upwork, or LinkedIn profile
  • Strong portfolio

9. Home-Based Candle or Soap Making

Initial Investment: ₹15,000 – ₹40,000
Why It Works: There’s a growing demand for handmade, organic, and aesthetic self-care products. Offer customized candles for festivals and gifting seasons like Diwali or Valentine’s Day. This can turn out to be one of the best business under 1 lakh for you especially in India where handcrafted products are appreciated.


What You Need:

  • Molds, wax/oils, colors, fragrances
  • Online marketing (Instagram, Amazon, Flipkart)
  • Creative packaging

10. Social Media Management for Local Businesses

Initial Investment: ₹5,000 – ₹25,000 (for courses/tools)
Why It Works: Every shop wants to be online but lacks the skill or time to manage social media. Charge ₹2,000–₹10,000/month per client; target salons, boutiques, gyms, or kirana stores.


What You Need:

  • Basic understanding of Instagram, Facebook, Google Business
  • Canva for designing
  • A good smartphone/laptop

What Government schemes and digital tools can you leverage to succeed within 1 lakhs?

Leverage Government Schemes:

  • MUDRA Loans for micro-enterprises
  • Skill India and Startup India initiatives
  • Free training programs and MSME support portals

Use Digital Tools:

  • POS software for billing and inventory management.
  • WhatsApp Business for customer communication
  • Google Business Profile for local search visibility

Start Hyperlocal:

  • Begin in your neighborhood or online community
  • Focus on feedback and refine your offering

Create a Mini Brand:

  • A simple logo, clean packaging, and social media presence can boost trust
  • Use free tools like Canva for marketing

Conclusion

Starting the best business under 1 lakh in India is not only possible—it’s smart. You don’t need an MBA or a fancy office. What you need is:

  • A clear problem-solving idea
  • Basic investment and tools
  • A consistent effort in marketing and customer service

These low-investment ideas are perfect for anyone who wants to start their entrepreneurial journey without financial pressure.

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