India’s manufacturing sector is evolving rapidly, shifting from an import-dependent economy to a global production hub. According to Mordor Intelligence, the industry is projected to reach $338.5 billion by 2025, growing at a 9.11% CAGR, and potentially hitting $532.56 billion by 2030.
This growth is fueled by digitization, automation, and improved production quality, making India an attractive destination for global investors and creating new business opportunities. The focus on local manufacturing over outsourcing has further strengthened the sector, driving demand for high-quality products and advanced technology.
With these advancements, India is set to become a powerhouse in global manufacturing, offering entrepreneurs and SMEs lucrative opportunities to enter the industry. If you are looking to start a successful business in the manufacturing field in India, this guide will help you understand the trending manufacturing businesses, their market trends, and support from the government.
- Manufacturing Opportunities in India: Key Insights for Entrepreneurs
- Best Manufacturing Regions in India
- Government Schemes to Support Manufacturing Businesses
- Adapt Smart Manufacturing with Kladana
- Trending Manufacturing Business Ideas in India 2025
- Summing Up
- FAQs on Manufacturing Business Ideas in India 2025
- List of Resources
Manufacturing Opportunities in India: Key Insights for Entrepreneurs
Start by evaluating the financial aspects — understand your initial investment and potential revenue based on industry statistics.
| Business Unit | Initial Investment | Profit Margin | Annual Revenue Potential |
Incense Sticks |
₹5–10 Lakhs |
25–40% |
|
Jewelry |
₹10–25 Lakhs |
30–50% |
|
Handicraft |
₹3–15 Lakhs |
20–35% |
₹20–50 Lakhs |
Textile |
₹10–20 Lakhs |
25–45% |
₹1–3 Crore |
Organic/Agro Base |
₹10–30 Lakhs |
35–55% |
|
Biodegradable Bags |
₹10–20 Lakhs |
20–40% |
|
Herbal & Ayurvedic |
₹15–30 Lakhs |
30–50% |
₹80 Lakhs – 2.5 Crore |
Food Processing |
₹20–60 Lakhs |
25–50% |
|
Kitchen Utensils |
₹10–30 Lakhs |
25–40% |
|
Block & Concrete |
₹30–80 Lakhs |
20–35% |
₹1.5–6 crores |
Best Manufacturing Regions in India
Now, let’s explore the ideal locations for setting up your production facilities based on regional advantages.
| Regions | Key Manufacturing Sectors | Why It Thrives |
North |
Jewelry, Incense Sticks, Handicrafts |
Rich cultural heritage, skilled artisans, and easy access to raw materials |
West |
Textiles, Concrete Blocks, Food Processing |
Strong industrial base, export proximity, and large consumer market |
South |
Textiles, Incense, Kitchen Utensils |
Skilled labour, advanced manufacturing facilities, and high domestic demand |
East |
Handicrafts, Organic Farming, Herbal Products |
Abundant natural resources, fertile soil, and growing demand for herbal goods |
Central |
Food Processing, Concrete Blocks |
Rapid infrastructure growth and diverse raw material availability |
Government Schemes to Support Manufacturing Businesses
Another key factor to consider is the government support available for startups in the manufacturing sector. Let’s explore the schemes that can help you get started.
| Government Schemes | Industry Focus | Benefits |
Electronics, Textiles, Food Processing |
Tax rebates and financial incentives |
|
Entire Manufacturing Industry |
Simplified regulations |
|
Small and Medium Enterprises (SMEs) |
Low-interest loans |
|
Herbal and Ayurvedic Sectors |
Marketing support and funding for market research |
|
Textile and Clothing Manufacturing |
Infrastructure support and export benefits |
|
Handicraft and Artisan Sector |
Training, financial aid, and market exposure |
|
Construction and Infrastructure |
Access to government tenders and policy support |
|
Agro-Based and Organic Industries |
Certification assistance and market connections |
|
Organic Food Sector |
Global promotion and certification support |
|
Food Processing Industry |
Grants for growth and modernization |
Adapt Smart Manufacturing with Kladana
If you want to stay ahead and survive in the market, you need to have intelligent solutions that will help streamline your operations. This is where Kladana comes in to help with the solution for manufacturers.
Kladana’s Production Management Module helps manufacturers streamline operations, reduce costs, and improve efficiency. Here’s how:
✅ Simplified Production Planning
Plan production stages, assign tasks, and track progress — all in one place. Ensure raw materials and resources are available when needed.
✅ Accurate Cost Calculation
Automatically calculate production costs, including raw materials, labour, and overheads. Gain real-time insights into profitability.
✅ Optimized Inventory Usage
Track raw materials, WIP, and finished goods in real-time. Prevent shortages or overstocking, keeping operations smooth and cost-efficient.
✅ Seamless Order-to-Production Workflow
Convert sales orders into production orders instantly. Align manufacturing with customer demand to reduce lead times.
✅ Quality Control & Compliance
Monitor production quality at each stage. Ensure consistency, reduce waste, and meet regulatory requirements.
✅ Data-Driven Decision Making
Generate reports on production efficiency, costs, and stock movement. Make informed decisions to improve productivity and profitability.
Start using Kladana’s Production Module for ₹3,836 a month.
Trending Manufacturing Business Ideas in India 2025
Let us now discuss in detail the 10 most trending manufacturing business ideas in India for 2025.
1. Agarbatti — Incense Sticks
Incense sticks are known as agarbatti in India. An incense stick usually contains the extracts of the Commiphora wightii tree, sandalwood herbs, etc. Indians, deeply rooted in their culture and traditions, use this product. It is believed to purify air and bring positive energy to the environment.
In India, almost every household uses agarbatti for all religious occasions. As a result, it is also immensely gaining popularity in temples, churches, mosques, and monasteries. The demand for agarbattis is consistent, making it a strong option for low-investment manufacturing businesses with steady demand.
For example, Lakshmi Trading Services launched their agarbatti business in 2018 with an investment of ₹8 lakhs. By 2023, thanks to strategic investments in production, efficiency, and branding, they grew their revenue to ₹45 lakhs annually with a 28% profit margin. They capitalized on local market advantages, such as low production costs and proximity to religious hubs, to build a profitable enterprise.
In almost all the parts of India, everyone is running in manufacturing the Agarbatti, but until now no one is able to surpass this market from the region of Karnataka and Tamil Nadu. These two states are considered to be the highest exporters in India. They have access to raw materials, such as the best-quality bamboo sticks, perfumes, and essential oils.
According to Markets & Data, incense sticks were worth $1,234.5 million for the year 2024, and it is expected to grow up to $1,950.59 million by 2032. What is driving this growth? It is because in India they are part of everyday life.
2. Crafting Jewelry
In India, jewelry manufacturing is one of the ancient businesses. It started long before traditional gold and diamonds, as well. There is a lot of handcrafted jewelry nowadays. If you’re creative, starting a business in this field is a fantastic idea. You just need to be more creative. Similarly, social media platforms like Instagram and Facebook will allow your small businesses to directly connect globally with their customers.
Jaipur, Kolkata, Delhi, Bangalore, and Mumbai are the biggest markets for jewelry. So, it is better that you take wise decisions and start online rather than fail by competing in large markets.
India’s jewelry manufacturing has taken a big leap: everyone is shifting to e-commerce and online payments. TechSci Research estimates that the e-commerce sector expanded by 12% in 2024.
So, for those small entrepreneurs who were running their business with traditional methods with no fixed rate, they are facing challenges, but now all the retail chains serving online are ruled with fixed rates and certifications. It is making it easier for the customers to be clear while buying jewelry with a real pricing rate and transparency. Hence, now it is easy, safe, and convenient to buy jewelry.
3. Handicraft Manufacturing
The rich Indian cultural heritage in handicrafts is always in demand, and now, with the rise in sustainability, it has made this industry very promising for the small business entrepreneurs. There are so many people nowadays in general who like to focus more on sustainable lifestyles. Similarly, now those artists who used to craft wood furniture, home decor, and textile-based crafts are emerging in the digital market, and it is helping them to leverage their business on a global scale.
For handicraft entrepreneurs, now is the time to expand to India. This market is mainly for small businesses. You can thrive in your traditional business on a global scale. It will not require a large sum of money to invest. In short, it will be quality over quantity.
Statista report values the national economy’s exports at $1,707,484.87 in 2024. This industry plays a giant role in improving the employment rate not only for businesses but also for skilled individuals, especially those living in rural areas.
4. Textile Manufacturing
Another key pillar of India’s boosting economy is the textile manufacturing industry. It is helping millions of people in getting employment and many opportunities for start-ups. The surge of demand in fabrics like cotton, linen, plant-dyed fiber, bamboo, kashmiri shawls, etc., is getting global attention.
When you start a textile business, the first step is to understand the raw materials, suppliers, sewers, and, most importantly, the skilled laborers. You have to always keep in mind that this business has a lot of competition. For you to start this business, you should consider manufacturing only one fabric at a time so that you understand the market and don’t face loss by taking into account many fabrics.
The Mega Integrated Textile Region and Apparel (PM Mitra) park scheme made a massive change for the textile industries. It has planned seven mega textile parks across the country with an investment of ₹4,445 crore. The primary objective is to establish more manufacturing units. The primary objective is to reduce costs and attract a global market. These parks will provide top infrastructure and improve production.
Neytt, a carpet manufacturer, creates and sells high-fashion carpets, rugs, table runners, and wall art to B2C customers in India and abroad. To stand out, they leverage their expertise in producing large-size machine-made rugs — something most competitors struggle to replicate.
5. Organic Farming and Agro-Based Manufacturing
In this materialistic world, many people are getting busier and busier with their work for making money. Many people are having trouble keeping up a healthy lifestyle during this time. But after organic and agricultural farming has come into the picture, so many consumers are becoming health conscious so that they can balance their lifestyle.
The growth in this sector is booming like anything, and it’s capitalizing so much. Their demand is rising in pulses, spices, wild honey, herbals, etc., and they are increasing day by day. The leading states in this industry are Kerala, Himachal, and Uttarakhand because of the weather conditions.
Small entrepreneurs living in small towns can efficiently run this business if they prefer not to explore metro cities. Especially if your place is a cold region, it will grow drastically, and with varieties of vegetables, you can boost your business by staying home without moving out of your hometown.
According to the Agricultural and Processed Food Products Export Development Authority (APEDA), 66% of consumers check for organic authenticity on packaging, making organic food production a strong market trend. In FY 2023, India’s organic market was valued at ₹16,800 crore (~$2 billion).
Unicorn Natural Products manufactures herb extracts, essential oils, seasonings, and spices, sourcing organic raw materials from NGOs, farmers, and local tribes across India. Their B2B customers include companies in the pharmaceutical and Ayurvedic industries that use natural plant ingredients in their products. The company supplies spices, oils, and extracts in bulk, with order sizes typically ranging from 1 to 20 tons for manufacturing or retail packaging.
6. Biodegradable Carry Bags Manufacturing
The country experienced a sharp increase in pollution. So, the government made strict regulations on using plastic. The market witnesses a sharp rise in biodegradable bags. This initiative helps small manufacturers to meet the demands by selling their biodegradable bags in supermarkets, D-marts, and e-commerce companies looking for eco-friendly packaging.
For those wanting to start this business, this is a good start; it’s booming. Due to India’s nearly complete ban on plastic use, you can now operate this business from anywhere in the country. So, all the people want these biodegradable bags in their household, shops, offices, etc.
The report by MarketsandMarkets predicts a 21.3% compound annual growth rate (CAGR) in the global biodegradable market from 2024 to 2029. It shows the shift towards more eco-friendly materials to use in the future and reduce the waste of pollution to decrease pollution.
7. Herbal and Ayurvedic Manufacturing
India is one of the major suppliers in the world for herbal and Ayurvedic goods. The global shift toward wellness products has helped India be on top. From buying health supplements to skin care, small businesses are flourishing in this industry. If you are one among those wanting to start this business, now is the right time for you without much investment in cost and less charge of labor. The only thing is that you should be someone who knows about the medicinal plants and their benefits. If you have this basic knowledge, it will be easier to gain profit in this business.
Some states, such as Kerala and Uttarakhand, are leading in this business. They have already established and are well-known for their several herbal and Ayurvedic brands.
The Indian government has approved significant funding for these states to foster further growth and economic development. In addition to India, this sector now exports to Europe and North America. According to a press release by the Government of India, the Ministry of Ayush launched the Central Sector Scheme for Promotion of International Cooperation in AYUSH. It is basically designed to boost exports globally and gain recognition for Ayurvedic yoga, Unani, Siddha, and homeopathy. This scheme is made to make India a global leader in medicine and wellness.
Cura Pharmaceuticals, a manufacturer of Ayurvedic and Unani products, offers a diverse range of 500+ items, including medicines (capsules, pills, and syrups), juices, oils, and vinegar. Focused on holistic well-being, Cura caters to health-conscious consumers while investing in research and development to stay ahead of industry trends.
8. Food Processing Manufacturing
India is experiencing a rapid growth in food processing manufacturing, driven by a changing lifestyle that favors more convenience foods. In metro cities, life is so busy that it is becoming difficult for the consumers to cook food in time. They are unable to balance it. This way, processed foods are gaining a lot of traction because they are ready-made and save time.
It is benefitting many small businesses, and even for startups, you can expand your business by leveraging small costs. One of the leading manufacturers in food processing was Maharashtra until now, but presently, with the growing demand everywhere, it is increasing day by day.
You can conduct this business from the comfort of your home, which is particularly advantageous for homemakers. They can devote their time to the household as well as take out time for this, which will bring a lot of profit and more employment to every household.
Artisanté, a craft chocolate and coffee manufacturer, launched just before the global pandemic. Despite the challenges, the company not only survived but thrived through strategic promotions, including PR, digital marketing, and influencer collaborations. Today, Artisanté serves B2C customers across India and internationally, along with a growing base of B2B clients.
9. Kitchen Utensils Manufacturing
The business of manufacturing kitchen utensils is growing rapidly in India. The steel utensil category is experiencing the fastest growth in the market. It is because half of India’s population is middle class and lower middle class. They want to purchase more of affordable and good, sturdy quality.
Exploring new varieties such as ceramic and non-toxic kitchenware further boosts the economy. Small business manufacturers in Tamil Nadu and Gujarat are leading this business due to their quality and price.
In this sector, the price should be very minimal to maximize your sales. Nowadays, consumers are focusing on toxin-free and durability. There is a lot of growth if you have a small business in this sector because the target audience is huge, and it is easy to profit both domestically and internationally as well.
According to Mordor Intelligence, the market demand is growing in cookware. It includes all types of kitchenware, like pots, pans, pressure cookers, etc., made from steel, aluminum, and glass. You can see in the graph below the high growth rate in the market.
10. Block and Concrete Manufacturing
In India, building a house traditionally involves using bricks, but with the increasing pollution and harsh weather conditions, this is no longer the case. People are moving away from bricks and switching to concrete due to its benefits, such as:
- Thermal insulation, which will give your house cooling resistance in the summer.
- It can also provide fire protection to you
- It has low maintenance and is sturdy.
- It is way more cost-effective than the traditional bricks.
This block is not only for construction, but you can also use it for flooring, paving stones, walls, etc. This block has brought more focus on sustainable solutions for people.
This business is booming in major cities like Maharashtra, Karnataka, and Uttar Pradesh. But now, with the increase in demand, the shift is also greater in the northeastern part of India. The northeastern population is increasing, and more tourists are coming. They have now started using more blocks. This has led to an increase in business there.
If competing in major cities is challenging for small businesses, they can focus on the northeast part of India. The manufacturers are still very few, but consumers are still purchasing it. It is a giant chance to grow your business if you shift your focus from the major cities.
According to TechSci Research, these concrete blocks are gaining significant growth in the market. It was valued $3.62 billion in 2024 and is expected to grow $6.16 billion by 2030.
Summing Up
The manufacturing sector in India is growing rapidly. With technological advancement and shifting consumer preferences, the market is full of competition.
The competition doesn’t stop after all; the main challenges start when you have to manage your production house, supply chains, inventory, etc. Many of the small businesses fail even after following all the steps because they handle everything manually and find it difficult to manage it.
FAQs on Manufacturing Business Ideas in India 2025
India’s manufacturing industry is expanding rapidly, driven by technological advancements and government initiatives. If you’re considering entering this sector, these frequently asked questions can provide insights before you start.
1. Which Manufacturing Businesses Are Currently Trending in India?
Key sectors include textiles, organic farming, food processing, incense sticks, herbal products, and Ayurveda-based manufacturing.
2. What Is the Minimum Investment Required to Start a Manufacturing Business in India?
Investment varies by business type. Small and medium enterprises (SMEs) may require ₹5–10 lakh, while larger ventures may need ₹50 lakh to ₹1 crore.
3. Are there Any Government Support Schemes Available?
Yes, schemes like MSME loans, Make in India, and the Production-Linked Incentive (PLI) scheme support manufacturing businesses.
4. What Are the Biggest Challenges in the Manufacturing Industry?
Key challenges include high operational costs, supply chain complexities, and regulatory approvals.
5. Which Are the Best Regions in India for a Manufacturing Business?
Gujarat, Maharashtra, Tamil Nadu, and Karnataka offer strong infrastructure, skilled labor, and access to raw materials, making them ideal for manufacturing.
List of Resources
- Mordor Intelligence: India Manufacturing Market Size & Share Analysis — Growth Trends & Forecasts (2025 — 2030)
- Markets and Data: India Incense Sticks Market
- TechSci Research: India Gems and Jewelry Market
- Statista Report: Value of Handicrafts Exported from Indian between Financial Year 2011 to 2024
- MarketsandMarkets: Biodegradable Plastic Market
- IBEF: Ayush Industry India
- Mordor Intelligence: Kitchenware Market in India Size & Share Analysis — Growth Trends & Forecasts (2025 — 2030)
- TechSci Research: India Autoclaved Aerated Concrete Blocks Market
- APEDA Report: Study of Indian Organic Market and Export Promotion Strategy
- Extension Journal: Business Appraisal of Incense Sticks. A Case Study of Lakshmi Trading and Services
- Industrial Extension Bureau: Establishment of Facility for Manufacturing of Artificial Jewellery
- Government of India: Economic Survey 2024–2025
- Institute of Industrial Development: Project Report of Biodegradable Plastic Bags
- The Ministry of Food Processing Industries: Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFMPE) scheme
- The Ministry of Micro, Small & Medium Enterprises: Schemes for SMEs 2024
- The Ministry of New and Renewable Energy: Production Linked Incentive (PLI) Scheme: National Programme on High Efficiency Solar PV Modules
- PM India: Make In India
- The Ministry of Ayush: Official Website
- The Ministry of Textiles: Textile Park Scheme
- The Ministry of Textiles: Handicraft Development Programme
- The Ministry of Housing and Urban Affairs: Smart Cities Mission
- The Ministry of Agriculture & Farmers Welfare: Paramparagat Krishi Vikas Yojana (PKVY)
- The Ministry of Commerce and Industry: National Programme for Organic Production (NPOP)
- The Ministry of Food Processing Industries: Food Processing Fund
