Punjab is the state which derives its name because of the 5 rivers flowing through it. It is a state with lush green fields and rich agriculture, it is an integral part of the agricultural infrastructure of the nation. Punjab carries a major chunk of the country’s agricultural exports too.
Along with being the top agro state, it is also a very popular state among tourists, home to beautiful spots like the Golden Temple, Wagah border, Jallianwala Bagh, etc it attracts both locals and foreigners alike.
All of these pose a great opportunity for starting a new venture in the field and the state also provides great incentives and support for the same
Overview of Punjab’s Economy
Punjab is termed the food bowl of India, in the year 2016-17, it contributed to 29% of rice and 38% of wheat in the central food grains of the nation. Agriculture derives 49% of the state’s GSDP.
The second highest contributor to the GSDP is the industrial sector contributing to 25% of the economy. This is followed by the service sector which makes up the other remaining quarter of the economy.
Punjab’s manufacture of Hosiery/Woolen goods contributes 65% to India’s manufacturing of similar goods. It also exports yarns and textiles valued at approximately Rs. 6000 crores
Why should you choose Punjab to open your business?
Punjab is a prime location for a new business because of its diversity and abundance in many sectors of the economy from agriculture to entertainment the state has a variety of audiences and consumers one can target and build a thriving business.
But what makes it highly efficient and attractive for businesses is:
Connectivity: the state has very efficient roadways and it is well-connected to major cities of the state. It has a road density of 133 per sq. km and is ranked second in the state. This transport system makes it easy to transport or even source goods from various places very easily and quickly.
Resource availability: Punjab is mostly known for its agriculture but apart from that it has a varied industry like sports, hosiery, garment, cloth, etc making raw materials for many businesses available easily on demand.
Skilled labor: Punjab is a place, where one can find cheap labor in bulk and create a strong workforce. It has a population of strong and able youth, they make very good employees and can be very helpful for a new business
Easy Market: The people in Punjab are full of life and they are known to support local businesses. It creates an easy market and makes it easier to create a loyal and supportive customer base if the sentiments are returned.
Top 20 Business Ideas In Punjab
An entrepreneurial endeavor is best when the owner has determination, support, and a great environment, except for the determination which one finds within, other external factors are easily available in the state of Punjab, in its people and the lush greenery and vast fields. Here are some good ideas for starting a business in Punjab
1. Transport Services
Given the great system of roadways and great connectivity, this can be a business idea you can tap into and earn great profits. It does not require much maintenance and only has high initial costs but provides great profits
- Total Investment: 20-30 lakhs
- Resources: vehicles, drivers, office space, parking space
- Profit Margin: 10-25%
2. Seed Production
As the food bowl of India and one of the top producers of food grains and rice, there is never a shortage in demand for agrarian products. The population of Punjab is mainly farmers making it a great market for seeds.
- Total Investment: 1-3 lakhs
- Resources: factory space, supply chain system, machinery, experienced labors
- Profit margin: 20-40%
3. Organic Farming
The rising demand for organic food in the world creates a great market for the farmers of organic products. Many countries like the European region are in high demand for organic food and the existing farming infrastructure could provide a leg up the ladder. The existing farming equipment and infrastructure save a lot of cost and investment for a new business owner
- Total Investment: 5-15 Lacs
- Resources: Farmland, fertilizers, manure, seeds, farming equipment, pesticides
- Profit Margin: 7-70% per month
4. Phulkari Boutique
Punjab has a talented army of artists skilled in the art of phulkari. Phulkari is the craftsmanship of blossom weaving on a piece of cloth or a shawl. It is very famous all around the world and always in great demand. This could also be a good contribution to cultural development and spreading the work of Indian artists around the world.
- Total Investment: 10-25 lakhs
- Resources: machinery, yarn, cloth, labor, dying and packaging material
- Profit margin: 6-25%
5. Cuisine-Focused Food Truck
The people of Punjab are great food enthusiasts and they value their food a lot. They are also famous for the world-famous ‘Butter Chicken’ which is the signature dish that represents Indian cuisine abroad. A cuisine-focused food truck would be very successful in Punjab, especially with a North-Indian cuisine base. It is a great business idea with low investment and high returns. It could be one of the best business ideas to start in Punjab
- Total Investment:10-30 lakhs
- Resources: a food truck, cooking skills, serving equipment
- Profit margin: 15-30%
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6. Travel Agency
The state being a very famous tourist spot is always in demand for travel options. Being very close to the hills also makes the state more special and enhances the travel business in the market. A travel agency providing easy, comfortable, and affordable options could be very profitable.
- Total Investment: 2-3 lacs
- Resources: commercial license, office space, digital communication, drivers
- Profit margin: 4-7%
7. Tourism Services
Apart from travel the state is often visited by many tourists during peak seasons, a tourism agency offering tours of all attractive places and hidden gems could become very popular among tourists. The residents of the state can also become customers if lucrative options like family vacation planning are offered
- Total Investment: 4-5 lakhs
- Resources: a good network of guides, transport facilities, office space, management personnel, licenses, and certificates
- Profit margin: 20-40%
8. Bed and Breakfast
As the state is flooded with visitors, especially in cities like Amritsar and Ludhiana the hotels are always in shortage. Opening a bed and breakfast would be a hit if basic services are provided and as time goes by, if services offered are good, it could take off in no time.
- Total Investment: 50000 to 1 lacs
- Resources: cooking space, cooking skills, cutlery
- Profit margin: 20-30%
9. Bakery
The state of Punjab has very fresh produce and it is a big supplier of wheat making every raw material for a bakery easily available for a baker. The state’s food culture can ensure good profit in the business
- Total Investment: 80000 – 5 lacs
- Resources: bakery goods, oven, bakery shop(optional), refrigerator
- Profit margin: 40-80%
10. Dairy Farming
The availability of large fields makes good pastures for maintaining and investing in dairy farming. The large feedstock could also mean a lot of animal refuse which is popularly used as manure in agriculture, making it a good business to start in Punjab
- Total Investment: 10-30 lakhs
- Resources: cattle, feed, feeding land, food and water for feedstock, packaging material
- Profit margin: 3-4%
11. Micronutrient Business
Farmers are always trying to find ways to enhance their crops and increase the quality of the crop. Micronutrients are a necessity for every farmer and if you provide good-quality products it could be very successful.
- Total Investment: 5-25 lakhs
- Resources: machinery and equipment, working space, packaging equipment, labor
- Profit margin: 20-30%
12. Automobile Repair
Punjab has a lot of commercially owned vehicles, but their maintenance is a requirement too, starting an automobile repair business has a great prospect for the state.
- Total Investment: 2-15 lakhs
- Resources: garage space, mechanics, GST licenses, repairing and maintenance equipment
- Profit margin: 30-50%
13. Lending Agriculture Equipment
Along with big farmers, many small farmers are unable to afford expensive equipment, which makes them potential customers if you plan on opening a business that involves lending agriculture machinery to them.
- Total Investment: 30-40 lakhs
- Resources: agriculture equipment, record keeping, maintenance equipment
- Profit margin: 30-40%
14. Event Management
The entertainment industry of Punjab is growing at an accelerated speed. An event management agency could be successful in this growing industry of catchy music and entertainment.
- Total Investment: 50000 to 1 lacs
- Resources: Laptop, an office space, internet, phone or any other form of communication
- Profit margin: 5-10%
15. Sports and Management Centre
Punjab along with being a producer of rice, has produced many promising athletes and it is projected to grow in future years too. Providing a space for athletes to grow and learn could be very successful.
- Total Investment: 25-30 lakhs
- Resources: training space, trainers, fitness equipment, mats, etc
- Profit margin: 30-40%
16. Wellness Retreat Centre
The endless fields and fresh air of the state are very refreshing and they could be utilized efficiently in the form of a wellness retreat center. This could be a good business idea to start in Punjab
- Total Investment: 20-30 lakhs
- Resources: retreat space, rooms, kitchen, food preparation, and serving equipment.
- Profit margin: 20-30%
17. Handiwork Retail
Punjab is very famous for its phulkari art, There are also a variety of artists who make many intricate designs and more handiwork which could be used to sell them and make the public more aware and also help the handiwork artists
- Total investment: 1-10 lakhs
- Resources: display space, good supplies, computer, printer
- Profit Margin: 5-10%
18. Textile and garment Manufacturers
As mentioned previously Punjab is a very big exporter of yarn and hosiery, which makes it very smart to join the market as it is projected to grow in the future years.
- Total investment: 10 -50 lakhs
- Resources: factory space, machinery, operators, designers, computers
- Profit margin: 5-15%
19. Woolen Cloth Boutique
Cities like Ludhiana in Punjab are known to have the best variety and quality of woolen clothes and the harsh winter in the state has made it one of the best business ideas for the state.
- Total Investment: 5-10 lakhs
- Resources: boutique space, stock, and inventory of clothes, tailors
- Profit margin: 10-20%
20. Storage Unit Rental
All agricultural produce and products require a place to be stored opening a storage unit can help both you and the farmers to keep the products safe.
- Total Investment: 20-50 lakhs
- Resources: storage unit, safety measures, cooling devices(if cold storage unit)
- Profit margin: 30-40%
Conclusion
Punjab, the state of five rivers is known for its vibrant culture, good food, and lively people. economically agriculture being the primary livelihood is very famous for its textile and hosiery too. All of these make the state very economically robust and a great prospect for starting a new business.
Along with that the fact that the state has amazing road and rail connectivity, it is famous among tourists makes it a very good place to do business.
There are many ideas for a budding entrepreneur like organic farming and dairy farming etc which are easier due to the presence of existing agricultural infrastructure. Other options like food trucks, bakery businesses, transport services, and travel agencies are also great avenues to be explored.
Starting a new business might be expensive and tricky but with the right amount of brains and hard work, it can easily be conquered.
Frequently Asked Questions
Ideas for small businesses in villages of Punjab?
Many small businesses would thrive in the state of Punjab. Businesses like bakeries or food trucks, phulkari, or fashion boutiques might do very well.
Which business is in demand in Punjab?
Even though agriculture is the main business in Punjab the demand for dairy products is constantly rising and hence it would be a profitable venture to invest in a dairy business.
Which industry is the best in Punjab?
The agriculture and derived products industry is the best known in Punjab, the state generates nearly half of its income through agricultural products and products
What are the benefits of investing in Punjab?
There are many benefits to investing in Punjab like good connectivity, skilled labor, government support, good market, etc. making it a very good investment opportunity.
What business can be started in Punjab with less than 5 lakhs?
many businesses like an event management company, a bakery, or a food truck can be started under 5 lakhs in the state of Punjab.
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