Top 9 Profitable MSME Business Ideas in India 2022

Devashish Shrivastava Devashish Shrivastava
May 23, 2022 9 min read
Top 9 Profitable MSME Business Ideas in India 2022

Countries across the globe are doing their best to improve the condition of MSME and hence, the economy. Small and medium businesses or companies are corporations whose staff and outputs aren't huge. The abbreviation SME (Small and Medium Enterprises) is used by societies, organizations, and institutions worldwide. Some examples include the United Nations, IMF, etc. SMEs are now challenging big corporations in their domains and taking value creation to new heights.

In July 2011, the EU Commission announced it'd unlock a gathering on the outline of SMEs in 2012. And it identified three parameters to define the eligibility of an SME:

  • Micro commodities are corporations with up to 10 workers.
  • Small corporations employ up to 50 labourers.
  • Medium-sized investments have up to 250 employees.

Here are 9 business ideas to start out as a micro, small, or medium enterprise:

1. Jute Shopping Bags
2. High-Temperature Aluminum Established Paint
3. Pan Masala, Meetha, And Sartha
4. Turmeric, Dhania, and Chilli Powder
5. Neem Oil
6. Cow Urine Processing And Packaging
7. Sanitary Napkins
8. Cashew Nut Shell Oil
9. Corrugated Galvanized Sheet

What is MSME?

The EU explanation of SME is, "The classification of micro, small, and medium-sized investments comprises companies which assign rarer than 250 employees and which retain an annual turnover not surpassing 50 million euro. And/or an annual proportion sheet entire not outweighing 43 million euros." The explanation in Germany gave birth to a threshold of 255 workers, while in Belgium it could amass 100.

MSMEs take advantage of a major position in economic and social improvement, thereby empowering flip to entrepreneurship, as they need intrinsic factors of being creative and conscious of altering market dynamics.

The Micro, small and medium enterprises (MSME) sector has emerged as a highly active and emotional area of the Indian thrift. It is widely celebrated as a machine of economic development, particularly within the context of Make in India by the Government.

List of MSME Business Ideas in India:

1. Jute Shopping Bags

Jute Bags
Jute Bags

Jute fabrics are tough, reliable, light, desirable, and more inexpensive than most of the textures earned from fibres. There is an extremely easy sewing appliance/device available for creating jute bags. There is a reasonable need for jute bags in India which makes it one of the best MSME businesses in India.

Jute bags retain decent export potentiality. Raw materials expected for preparing Jute bags are cotton strings and Jute fibre fabric. It can be stored in a grassland carton and shipped. The common jute bag model attained a significance of US$ 1.4 Billion in 2016 and showed a CAGR of over 11% during the period 2009-16.

The demand is propelled to attain the importance of US$ 2.6 Billion by 2022. Indian jute carry and shopping purses exporters are exporting millions of backpacks every year.

2. High-Temperature Aluminum Established Paint

Heat-resistant aluminium paint and dyes can withstand sickness, blazes, oil, rust and fumes, making them an excellent choice for particular petitions. The paint is instructed by stirring a special binder or binder mixture, solution or solvent mixture, and additions.

Perhaps, a tint or group of tints concurrently is the same way to generate a particular formulation that, when fixed will retain specific properties. The global need for colour and coverings is predicted to surge 3.7 per cent per year to 54.7 million metric tons in 2020, esteemed at $193 billion.

The market has examined a rise in the demand for high-temperature coverings from the automotive enterprise. High-temperature coatings are greatly expended as cookware, stoves, grills, and bakeware since they furnish outstanding opposition against warmness.

3. Pan Masala, Meetha, And Sartha

Pan masala is a proportional recipe of betel layer with lime areca loon, clove, cardamom, mint, tobacco, essence and other components. It generally works as a mouth freshener and is way better than the Western unnatural pan masala (created using artificial ingredients).

As a result, India outperforms the schedule of smokeless tobacco addicts in the world with almost 83% of buyers. Indians are so obsessed with flavoured tobacco pan masala and gutkha despite the ban on its trade and sale in 11 governments to date.

Shoppers are however buying grip of their everyday fix, courtesy contraband sales. Among the several categories of pan masala functional within the Indian market, pan masala containing tobacco depicts the dominating category analysis for over 50% of the entire demand. As an amount, there's a good expanse for a replacement entrepreneur to subsidize in this industry.

4. Turmeric, Dhania, and Chilli Powder

Turmeric, Dhaniya and Chilli Powder
Turmeric, Dhaniya and Chilli Powder

Seasonings affect odour, colour, and flavour to a large extent. The unstable oils from seasonings give the odour and the oleoresin imparts the flavour. Spices are a non-leafy portion of grains utilized as a flavouring or sauce, although several also can be utilized as a herbal treatment.

The Indian spices demand is propelled and reached nearly USD 18 billion in 2020, and expansion within the area is anticipated to be overseen by branded spices and spice combinations. The Indian government is aggressively stimulating spice exports through several enterprises.

Spice gardens offer widespread processing capabilities to both makers and exporters. This is one of the top MSME business ideas and there's a good extent for an early age entrepreneur to invest in this business.

5. Neem Oil

Neem Oil
Neem Oil

Neem oil is attained from the cereals of the Azadirachta indica. Utilization of the neem plant is to be established with the crisis of institution of standardized exhibition and crushing of grains. Neem oil extractive, the residue from the neem oil refining process, is a beneficial mosquito larvicide. The substance acts as an immediate assassin of the first instar larvae of culex fatigans at 0.04% attention whereas, at deeper attention, it had halted toxicity.

Azadirachtin, a full-of-life compound obtained from neem seeds and different portions, has insecticidal properties. It's an alternative to artificial pesticides. Projected development within the common biopesticide demand at a CAGR of 15.8 percent from 2012 to 2017 may be a standpoint development driver for neem as a commodity.

6. Cow Urine Processing And Packaging

Gomutra is not a harmful waste substance. 95% of it is gas, 2.5% comprises urea, and the remaining 2.5% is a variety of minerals, salts, hormones and enzymes. Gomutra is urine from cows and is employed for remedial bases in informal Indian therapy, Ayurveda, and also for cleansing in Vaastu Sastra.

Cow urine has a bio enhancing trait for Rifampicin, the beginning line anti-tubercular medication used against tuberculosis, and boosts its action up to sevenfold against Escherichia coli, and up to 11 crumples against Gram-positive bacteria.

Cow urine is in demand not only in India but around the world. An excellent SME business idea is given that cow urine is getting even more recognition now for its benefits.

7. Sanitary Napkins

Sanitary Napkins appear under nonwoven textures, which as a good come under specialized material. In expansion to sanitary napkins, the non-woven cloth is furthermore obtained in various other commodities like cigarette filters, leads, airlines disposables, surgical disposables, and non-woven wipes.

The Indian Kotex market attained a significance of about US$ 414 million in 2016. The popularity and need for eco-friendly, bio-degradable feminine hygiene products are growing tremendously. The market is expected to exceed US$ 596 million by 2022, rising at a CAGR of over 6%.

By taking up this initiative, you'll be empowering millions of girls and women to practice and achieve the right hygiene standards.

8. Cashew Nut Shell Oil


Cashew Nut Shell Liquid (CNSL) is an adaptable by-product of the cashew fruit. The nut has a husk of nearly 1/8 inch density inside which is a delicate honeycomb configuration comprising an opaque reddish-brown viscous fluid. It's named cashew nutshell fluid and is the pericarp liquid of the loon.

It's often contemplated as an inexpensive component for unsaturated phenols. CNSL and polishes brought about from it are widely utilized for laminations, brake linings, electrical insulation, ground membranes, publishing inks, etc. Indian cashew nut commerce gives birth to an oil demand for CNSL.

CNSL Oil is expended in enterprises. Thus, there is a decent need for industrially expanded nations. The straight and quadratic direction criteria rated India's cashew nutshell fluid export to be 19,044.47 tonnes and 23,483.48 tonnes for the year 2020 respectively. India is the biggest customer and also the second-largest builder of cashew nutshell fluid in the world.

9. Corrugated Galvanized Sheet

Metal sheets
Metal sheets

The corrugated atomic number 26 panes are the most effective, widely recognized, and vastly usable low-cost shelter enclosing entity. Metal sheets are categorized consistent with their density and ground region. These are twirls constructed by roll shaping tools; the density and colour will therefore be unique.

These boards are emphasized with simple structures, high stability, and economical costs. The requirement for sheet metal covering is fulfilled through both regional safety and implication. It was 1,418,399 tons in 2017 and is expected to reach 2,852,906 tons by 2022.

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MSME in Different Countries

Here is the variation of Micro, small and medium enterprises (MSME) in different countries:


The Administration of India authorized the Micro, Small and Medium Enterprises Development Act, 2006 encompassing explanations of micro, small, and medium enterprises as follows:

  • A standard business is an industry where the enterprise in factory and machinery is more than Rs. 5 crores but doesn't exceed Rs. 10 crore.
  • The articles were restricted by the Ministry of Small Scale industries vide an announcement dated October 5, 2006.
  • Investments committed to giving employment are distinguished by their status of enterprise within the appliance as follows: A microenterprise is an investment where the enterprise in the appliance doesn't outperform Rs. 10 lakh. A small business is an industry where the involvement within the material is more than Rs. 10 lakhs but accomplishments don't exceed Rs. 2 crores. The medium investment could be a business where the undertaking within the appliance is around Rs. 2 crores but performance doesn't exceed Rs. 5 crores.


The prominent bank of Nigeria distinguishes small and medium investments based on the investment and the amount of faculty assigned. The standards are a bargain basis between N5 million and N500 million, and an act of personnel courage between 20 and 300 workers.


In Israel, an industry is contemplated minor if it remembers not further than 50 workers. A normal industry clenches between 51 to 250 employees.

New Zealand

In New Zealand, 99% of businesses assign 50 or smaller faculty, and the accepted description of an SME is one with 19 or fewer workers.


In Australia, an SME encompasses 200 or fewer workers. Microbusiness consist of 1-2 workers. A small industry ranges from 3 to 15, a medium one has 16-200 resources, while a large enterprise has 201-500 workers.


The SME locality in Poland produces nearly 50% of the GDP, and out of that, for instance, micro-companies contributed 29.6%, minor corporations 7.7%, and fair firms 10.4% to the GDP in 2011.


The Canadian defines a minor industry to have occasionally 100 workers or more. In rare cases, less than 50 labourers qualify as a minor segment. A medium-sized business has around 500 hands.

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How do I start an MSME business?

Choose a product you want to sell, arrange finance, fill out the required documents, set up your store and start selling.

Which industries are included in MSME?

Leather products, Natural Fragrance and Flavours, Training and Educational Institutes, and Beauty Parlours are some of the top industries included in MSME.

Which business is best for MSME?

Gold and Diamond Jewellery, Ladies' Undergarments, A4 and A3 Size Paper, and Production of Jute Bags are some of the best MSME businesses.

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