Being the first in the pharmaceutical industry of India, Gujarat houses several businesses and start-ups in different fields. It is a very developed marketplace and has very good road connectivity which offers several benefits to small businesses to improve their profitability and brand image. Also, here one can begin a small business with very little capital invested at the initial stage.
Therefore, if you are specifically interested in small business ideas in Gujarat and have sufficient knowledge of the existing trends, it will be useful for you. This will enable you to have a clue of what is trending in the market and hence have a clue of what to avoid in the future.
Why Choose Gujarat for Starting Business?
1. Strategic location:
This has put Gujarat at a very advantageous point as far as the business front is concerned. It has big seaports for it is in a position to provide direct access to the major international sea lanes. This makes exports and imports of goods easy thus enabling businesses to access the international market.
2. Robust infrastructure:
Gujarat has a well-developed means of transport and communication such as roads and railways etc., and has a proper electricity connection. This has eased the movement of goods by business units and also the internal running of business entities. The fact is that the companies are endowed with good infrastructure that enables them to conduct their activities with efficiency at low cost.
3. Business-friendly policies:
The government in Gujarat has eased the process of business formation and operations in the state. They have removed most of the rules concerning complexity and have provided a single point, through which approvals can be made. This is useful in a way because it is not as time-consuming and is not as much of an inconvenience for business individuals.
4. Skilled workforce:
Gujarat has a large number of educated and trained workers to serve in its factories or industries. There are good schools and colleges which produce good professionals. This, in effect, translates to the idea that it becomes quite possible for companies to source talents for various vacancies- technological-oriented positions as well as executive positions.
5. Industrial clusters:
As for Gujarat, it has an annotated industrial structure but it has separate zones for different types of industries. For instance, there are specific areas of development for the textile industries and pharmaceutical industries among others. This makes it possible for similar business entities to combine efforts and share some of their assets.
6. Economic growth:
The growth rate of the economy of the Gujarat state has been high for several years now. This is because their availability provides more opportunities for new entrepreneurial firms to be formed and to grow. There is a greater customer flow and more chances to turn a profit during the period of economic growth.
7. Entrepreneurial culture:
The people of Gujarat are very passionate about setting up their businesses. The state promotes development and supports young businesses. Thus, there are many programs and activities that could encourage people to become an entrepreneurs.
8. Natural resources:
Gujarat possesses a lot of valuable resources in its soil such as minerals. It also has a long coastline which makes it ideal for industries that need access to the water body. The following are the various ways through which these resources can be used by businesses:
9. Investment incentives:
There are incentives from the government for people to start new businesses. This includes rewards, which are in the form of tax exemptions as well as the granting of subsidies for undertaking an enterprise. Such incentives can be of great importance in the reduction of costs and risks to the new generation of business ventures.
10. Quality of life:
So there are some new cities in Gujarat that seem to have better infrastructural facilities such as hospitals, and schools. It also has a cultural aspect and due to this the country has been among those preferred by tourists from all over the world. This makes it a nice place to live which in turn can help in attracting talented workers and retaining them.
List Of Best Business Ideas in Gujarat
| S. No. | Business Ideas | Average Investment | Average Profit Margin |
|---|---|---|---|
| 1 | Solar Power Management | 1 Lacs | 50% |
| 2 | Dairy Farming | 10 Lacs | 10% |
| 3 | Tourist Guide | 4 Lacs | 25% |
| 4 | Tiffin Service | 20,000 | 100% |
| 5 | Garment Manufacturing | 5 Lacs | 30% |
| 6 | Grocery Store | 50,000 | 100% |
| 7 | Spice Production | 6 Lacs | 20% |
| 8 | Papad Production | 50,000 | 50% |
| 9 | Textile Production | 2.5 Lacs | 10% |
| 10 | Fertiliser and Chemical Production | 1.5 Lacs | 30% |
1. Solar Power Management – Small Business Ideas in Gujarat
Having a favourable climate for most of the year, Gujarat is also an apt place to harness solar energy. That is why you can start a business generating solar power because the region has sunlight throughout the year. In this venture, you can produce several products including; solar panels, batteries, lights, and water heaters among others. Furthermore, the establishment of big solar power stations offers enough room to new entrepreneurs who wish to expand their companies.
- Investment – ₹1,00,000 to ₹3,00,000
- Resources – A land area of about 1000 to 2000 sq. Such as a factory or plant, required raw material, necessary tools and equipment, silicon, an electric arc furnace, minimum wages of labour, promotional materials, packing etc.
- Market Demand – The Solar power management industry will expand by USD 240. 42 billion ($1974882006000) during the forecast period of 2021–2026 with a CAGR of 35. 24%.
- Profit Margin – ₹50000 to ₹1,50,000 monthly
2. Dairy Farming – Traditional Business Ideas in Gujarat
It is therefore advisable to start a dairy farm business in Gujarat given the fact that India is the leading producer of milk. It is an environmentally friendly model because it doesn’t pollute the environment as most other industries do. Some of the quality and high-demanding products that can be manufactured include milk, butter, ghee, curd and much more. Furthermore, it is possible to start this venture at a small level of operation.
- Investment : ₹10,00,000 to ₹20,00,000
- Accommodation – Professional consultant, irrigation system to feed the greenery, storage, milking parlour, surgery, sheds, licence, among others.
- Market Demand – The market size is ₹238430 crores by 2027 with a CAGR of 13% between 2023 and 2028.
- Profit Margin – ₹30,000 to ₹40,000 every month
3. Tourist Guide – New Business Ideas in Gujarat
It is also good to become a tourist guide since one will be dealing with foreigners and at the same time explaining different cultural and historical attractions. It is one of the best businesses in Gujarat that one can do at a low capital investment in the areas of tourist activities. For instance, this includes Somnath temple, Sabarmati Ashram and Dwarka are among some of the tourist attraction sites where you can establish your business. But to embark on this, you require good English communication skills to enable you to make it.
- Investment – ₹4,00,000 to ₹8,00,000
- Resource – Office and working space, active accounts in social networks, cooperation with hotels and other tourist points of interest, local guides, etc.
- Market Demand – The travel and tourism industry will grow at a CAGR of 13 per cent. 47% and reach a market size of $ 31. The research findings show that it will reach $ 35 billion by 2027.
- Profit Margin – ₹75,000 to ₹2,00,000 per month
4. Tiffin Service – Small Business Ideas in Gujarat
The tiffin delivery service business is one of the most successful small business ideas in Gujarat since it comes in handy for those who prefer homemade foods. This business can be started at a very low investment and one can target officegoers. This means that, when you offer good quality food and delivery services, you will be able to grow your business quickly.
- Investment – ₹20,000 to ₹30,000
- Resources– Utensils, social media, cooking, burner, tiffin boxes, licence, etc.
- Market Demand – The market for tiffin service in India will expand with a CAGR of 11%. 19% and will have an estimated market value of $ 79. The market size of the global medical imaging market is projected to reach 65 billion (₹6541045177500) by 2028.
- Profit Margin – ₹70,000 to ₹80,000 monthly
5. Garment Manufacturing -Traditional Business Ideas in Gujarat
Thus it is one of the best small business ideas in Gujarat as the state is one of the leading clothing manufacturers in India. Here people dress for different festivals in different manners. Traditional dresses of Gujarat such as the ghagra choli for women and girls and dhoti for men and boys are in great demand not only in the state but also in the other states. In addition, it is also possible to produce garments such as shirts, trousers for men and women and other Apparel Products.
- Investment – ₹5,00,000 to ₹15,00,000
- Consumable assets – Clothing materials such as cotton, yarns, fabrics, online selling portal, business space, carry bags, employees’ wages, warehousing, etc.
- Market Demand – Market demand will be USD 65 billion (₹533405925000) by 2026 with a Compound Annual Growth Rate of 11% for garment manufacturing industries.
- Profit Margin : ₹30000 to ₹1Lakhs per month
6. Grocery Store – New Business Ideas in Gujarat
It will therefore be advisable to open a grocery shop in Gujarat because there is a high demand for these products in the local market. Grocery business requires regular sales and with this aspect, one can make a lot of profits. However, you require the knowledge of the demand and availability of the various items of importance significantly before you begin the business. As for the flow of orders, while it is possible to buy goods online, the highest sales are made within the local area of the store’s location. Thus, it is necessary to pay more attention to the marketing and promotion activities.
- Investment – ₹50,000 to ₹2,00,000
- Resources – Foodstuffs, clobber, containers, permits, shopping carts, disposable shelves and holders, etc.
- Market Demand– The market for grocery stores will be at a CAGR of 10% in the next few years. This will grow to 98% from 2022 to 2030 and the market size will grow to USD 188 billion (₹15407352000000).
- Profit Margin – ₹1,50,000 to ₹ 2,50,000 monthly
7. Spice Production – Traditional Business Ideas in Gujarat
It is possible to start this business by growing spices including cumin, turmeric, fennel, and coriander. It has been established that the state has a well-linked supply chain to obtain raw materials, process and disseminate. Chilli spices are another important product of Gujarat and thus there is a high demand for them all over the area.
- Investment – ₹6,00,000 to ₹10,00,000
- Equipment – Raw spices, grinding machine, weighing scale, packaging machine, compressor, roaster and others.
- Market Demand – The demand for Spices in the India market is growing and in the financial year 2022 the market value of Spices is ₹160676 crores. This market will grow at the rate of 10 % CAGR. Of 7.5 % and 8% between the period of 2023 and 2028.
- Profit Margin – ₹50,000 – ₹1,00,000 per month
8. Papad Production – Small Business Ideas in Gujarat
Papad making is one of the best small investment businesses in Gujarat that can expand later with the use of a small-scale MSME business loan. This is so because Papad is a well-known dish and is taken as a snack in most of the Gujarat. The state is famous for its food ingredients; preparing the dish with genuine dal and genuine spices would prove anyone wrong. Furthermore, the locals enjoy this regional food and foreign tourists do look for such food.
- Investment – ₹10,000 to ₹2,50,000
- Raw Material – The various types of flour, pulses, spices, machinery, packing items, weighing scales, etc.
- Market Demand – As it is evident that such Indian snacks will attract a higher demand in the global market, it is expected that the market demand will increase at a CAGR of 10. 4% between 2023 and 2028.
- Profit Margin : ₹25,000 to ₹30,000 per month
9. Textile Production – Large Business Ideas in Gujarat
It will be advantageous to start a small-scale production business in Gujarat because it is the textile capital of India. The generation of crossbreed cotton, spinning units, power looms and the like has made the textile industry famous. Since cotton is readily available and the market for high-quality fabrics to be used in the production of finer apparel is always high, establishing this venture is viable.
- Investment – ₹2,50,000 to ₹5,00,00,000
- Resource – High-tech machinery, skilled labourers,
- Market Demand– The global textile industry has expanded at a CAGR of 10% from 2019 to 2026 and is expected to be USD 190 billion.
- Profit Margin – ₹2,50,000 thousand to ₹5,00,000 per month
10. Fertiliser and Chemical Production – Small Business Ideas in Gujarat
Venturing into the business of fertiliser and chemical production will be a wise decision because there is a growing trend of consuming organic foods in the country. You can avail of DBT on fertilisers and ocean freight if you wish to import chemicals or fertilisers. Furthermore, while supplying the products, you have to make sure of the correct type of crops for which the fertiliser or chemical is to be used.
- Investment – ₹1,50,000 to ₹2,00,000
- Tangible assets – Office accommodation, licence, stock, furniture, cartons, etc.
- Market Demand – The chemical fertiliser market will grow at a CAGR of 9% till 2020. 1% from 2023 to 2030.
- Profit Margin – 30%
Conclusion
Numerous good business prospects are avails in Gujarat. The article outlines ten viable opportunities, which include power from the sun, dairy farming, tourism, food services and textile manufacturing. They may be started with relatively small amounts of cash and the prospects for these businesses are quite promising.
The climatic conditions are congenial and infrastructure and markets are well developed in Gujarat which provides a perfect environment for starting new ventures and expanding the existing ones.
FAQs
1. What business can I start with little money in Gujarat?
The tiffin service business can be started with a minimum capital investment of ₹20,000 to ₹30,000 only.
2. Which of them has the highest profit to be earned by a business in Gujarat?
The business of grocery stores reveals high profitability of ₹1. 5Lakhs to ₹2. 5Lakhs monthly.
3. Which factors make Gujarat suitable for the solar power businesses?
It has a sunny climate all year round and therefore has the right conditions to harness solar power.
4. Why textile production is a good business idea in Gujarat?
Gujarat is familiar as a textile hub of India where raw material is easily available and there is a huge requirement for good quality textile products.
