Every giant company today was once a low-cost idea waiting to grow. ₹1 lakh in this regard may not seem much, but it is enough to start a business that could grow into one of those giant companies one day. You can start many low-cost small businesses under ₹1 lakh that not only grant you financial independence but also serve society meaningfully.
You can start many of these businesses from the comfort of your home without requiring a fancy office or heavy equipment. In this blog, we’ll explore the 15 best cheap business ideas in India you can start under ₹1 lakh.
The low cost is one of the benefits of starting a budget startup in India. The benefits, however, go just beyond the low cost. Here are all the reasons why starting a low-investment startup is a wise idea:
Here are some of the best and most profitable low-cost business ideas you can start with less than ₹1 lakh in India:
1. Tiffin Service
Individuals always move from villages to small cities and from small cities to metro cities. When they move, the first thing that they miss is the craving for homemade and nutritious food. This is why there is always a demand for homemade tiffin services, and you can start the business under ₹1 lakh. All you need is a kitchen, food supplies, and someone for delivery. You always start a tiffin service small, but they gradually scale it up with demand.
2. Digital Marketing Services
Digital ad spends in India are projected to grow to ₹56,400 crore in FY2026, supported by 5.5 crore users added in 2025. This shows that there is a growing demand for digital marketing services not just in India but in the world. You can start a one-person digital marketing agency. The key benefit of it is that you can offer your services both locally and globally. You must, however, master advertising, SEO, and social media.
3. Dropshipping
In dropshipping, you advertise a product and sell it entirely online without owning any stock. When a customer places an order, you send order details to the third-party supplier, who packages, ships, and delivers it directly to the customer. The key benefit of dropshipping is that you can start small and then add more products to your portfolio.
4. Home Bakery
If baking is your passion, you can turn it into a business by starting a home bakery. You can bake cakes, cookies, cupcakes, and more, and sell them from your home. You can specialise in personalised cakes and desserts, while allowing the customers to choose from different flavours and designs.
5. Tutoring Services
Indian parents always want to provide their children access to good education and, most importantly, learning. This is why the demand for tutors is growing in India. If you love teaching, you can start providing tutoring services online or from your home. You don’t require a huge space to rent a place for classes.
6. Tailoring and Alteration
Tailoring has been in demand for quite a number of decades. If you have a sewing machine and know how to use it, you can start a tailoring and alteration business. It is an extremely low-cost business idea with high profit margins.
7. Mobile Repairing
Nowadays, almost everyone has a smartphone, and they often require repair services, whether it is for a cracked screen or slow performance. Mobile repairing is a skill-based business, and a truly profitable one. All you need is the right skill and tools.
8. Home-based Beauty Parlour or Salon
You can start a small home beauty parlour as a low-budget startup in India. The home-based setup minimises cost but maximises profits. It also offers you benefits like a flexible schedule, a wide customer base, and reduced administrative work. You only need basic equipment, products, and training.
9. Freelancing
Freelancing is truly a low-cost business idea that you can start under ₹1 lakh. If you are passionate about writing or graphic design, you can offer these services to businesses and startups. Freelancing offers you complete flexibility to choose your offering.
10. Candle Making
Candles are one of the top choices for gifting in festivals and special occasions. When the design is unique or personalised, their demand grows, even in the off-season. You can sell these candles in bulk, both offline and online.
11. Photography
If you have a camera and you love clicking photos, you can start offering photography services to individuals. Whether it’s a birthday or a wedding, you have the option to choose from different events and occasions. You can buy the setup for under ₹1 lakh. To grow, you can extend your services to different events, products, or even social media content photography.
12. Event Planning
Birthdays, anniversaries, and office parties are held almost every week. If you’re good at organising things, this business is for you. It requires low initial investment but offers wide opportunities with weddings, corporate meetings, and parties.
13. Handmade Crafts
Handmade crafts are among the products of the category with the highest demand in the market. If you love crafts, you can design jewellery, handbags, pottery, or home mugs, and more. You can sell these products on marketplaces and Instagram.
14. Fitness Coaching
If you are a fitness enthusiast, you can become a yoga teacher or a personal trainer. You can offer classes online, at nearby parks, or one-on-one sessions. It requires minimal investment and has a growing demand.
15. Blogging or YouTube Channel
Blogging or a YouTube channel is a great opportunity to create a sustainable source of income by posting content that informs, entertains, or motivates your audience. Growing your platform will allow you to earn money through advertisements, sponsorships, and endorsements. This provides you with a reliable source of revenue in the long term, and as your audience increases, so will the potential revenue.
All these businesses have good profit margins. For instance, a bakery or a tiffin centre can make 30–40% profit. Digital marketing, content creation, and teaching can earn 70–80% since operating costs are almost nil. However, there are risks associated with every business. In these business ideas, the main risks are:
Here are some tips you can follow to grow your low-cost business into something much larger:
1. Which low-investment business gives the best profit?
Digital marketing, tutoring, and content writing are among the businesses that offer the highest profits, as costs are almost zero.
2. Can I start a bakery with less than ₹1 lakh?
Yes. You can start a home-based bakery startup under ₹1 lakh. You can use the funds to buy supplies, materials and equipment.
3. How much can I earn from a tiffin service?
The actual profit can vary based on the customers you serve, the cost of cooking, overhead costs and more.
4. Is dropshipping a safe business?
Yes, dropshipping is a low-risk business, but the competition is rising within the industry. This is why it is important to choose products with high demand and a profit margin.
5. Do I need special training for digital marketing?
Not necessarily. Special training is not always mandatory to offer digital marketing services, but obtaining certification significantly enhances your skills and credibility.
6. Which business is best for students?
Tutoring, content writing, and blogging are some of the businesses that are more suitable for students.
7. Can I run a tailoring business from home?
Yes. You can run a tailoring business from your home. Since you are running the business from home, it eliminates the cost associated with rent.
8. How risky is event planning?
The risk associated with event planning is moderate because it is affected by numerous external factors and requires complex coordination. Some of the risks involve unforeseen cancellations, vendor breakdowns, budgetary overruns and changing client needs.
9. Can I start photography without a studio?
Yes, it is possible to start a photography business without a studio. A significant number of photographers are freelance workers who go on-site to the homes of clients, outdoor settings, events, or rented areas when they are required.
10. How long does it take to grow a YouTube channel?
The growth of a YouTube channel depends on the content quality, niche, regularity, and viewer activity.
Disclaimer: The business ideas shared in this blog are based on research and current trends. DMI Finance does not recommend or guarantee any of them. Starting a business involves risk—please use your own judgment and discretion. DMI Finance is not liable for any loss or outcome resulting from actions taken based on this content.
DMI Finance Editorial Team