Top Profitable Retail Business Ideas in India (Categorized by investments)

Arbaz Sayed Arbaz Sayed
Apr 19, 2021 10 min read
Top Profitable Retail Business Ideas in India (Categorized by investments)

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The Retail industry in India has emerged as fast-paced industries due to many new retailers. Retail business in India accounts for 10% of GDP and 8% of employment. India is one of the top 5 retail markets in the world by economic value. It is one of the fastest-growing retail markets in the world.

On a daily basis, people require commodities and they explore for shops or hotels nearby. Retail business is the most profitable business in India with low and moderate investments. So people with low or moderate capital investments can focus on small or medium retail stores for a high-profit margin business in India.

What is Retail Business?
Types of Top Retail Business in India
Low Investment Retail Businesses in India
Medium Investment Retail Businesses in India
High Investment Retail Businesses in India

What is Retail Business?

A retail business is when a business sells a product or a service to the consumer for his/her use. A retailer sells the product higher than the wholesaler. Retail business can be considered as grocery convenience stores. Service-related businesses such as beauty salons and rental places are also considered retail businesses.

Types of Top Retail Business in India

1. Low investment business

2. Medium investment business

3. High investment business

Top Profitable Retail Business Ideas in India

Low investment Businesses Medium investment Businesses High investment Businesses
Kirana Stores Medical Store Coffee Shop
Stationery and Books Store Saree Shop Ice Cream Parlour
Fruits Store Gift Shop Fast Food Restaurant
Flower Shop Cosmetics Store Car Wash
Altering Shop Cake Shop Two-Wheeler Showroom
Tea Stall Perfume Shop Beauty Salon
Seed Store Sweets and Snack Store Restuarant

Low Investment Retail Businesses in India

Best retail business ideas
Top Profitable Retail Business Ideas

1. Kirana Stores

Kirana Store is one of the best profitable retail business in India. India has a huge population and a grocery store is a must in every locality. Every household requires basic supplies and the grocery store sells items such as soaps, spices, and food items, etc.

Top Retail Business in India
 Retail Market size Statistics

It is important to get the items you want to sell in a bulk from the wholesaler at a lower price. This will help you price the product at a competitive price.

Investment- INR 100,000

Profit Margin- 60%

2. Stationery and Books Store

Inaugurating a stationery and book store is a profitable and best retail business that does not require any specialized knowledge. Different types of storybooks, DVD, school books, and stationery items can be stacked in a stationery shop.

Best Retail Business
Stationery and Books Store

Your retail store should be a final stop for all school-going children's books or accessories. You can also stack some educational gadgets or toys that other retailers are not providing.

Investment- INR 100,000

Profit Margin- 20% to 55% (depending on different product)

3. Fruits Store

The advantage of this business is that you do not require any specialized knowledge. India has the largest agricultural market in India and fruits are a primary product. If you deciding to sell fruits then you need to shortlist the category of fruits based on supplies.

Investment- INR 35,000

Profit Margin- 40%

4. Flower Shop

Flower Shop is by far one of the most profitable businesses if you establish your business well. Many hotels require flowers on daily basis for their offices so if you tie-up with a hotel or offices, then your profit margin will shoot up to 80%. You can also stack your store with some artificial flowers and gifts for extra profit.

Flower shop
Flower shop is Also A Kind of Profitable Retail Business in India

You can sell bouquets with a different style or take orders for party decors and weddings.

Investment- INR 50,000

Profit Margin- 60 - 90%

5. Altering Shop

If you are good at tailoring and making outfit perfect for others then this business is for you. You can also set up your business at home and alter clothes. This business demands small capital investment.

Investment- INR 35,000

Profit Margin- 40%

6. Tea Stall

A tea stall is a great low investment business. Indians love tea, so if you set up your stall outside colleges or offices then the your profit will be high. Many offices also have contracts with the tea stalls for delivering tea daily to their offices.

Investment- INR 10,000

Profit Margin- 30%

7. Seed Store

Agriculture is the most important sector in our economy. Many farmers require seeds of good quality for their plants. While selling seeds focus on the quality of seeds, because that will boost the demand for your seeds. If you live near a village or an agricultural area you can grab this opportunity.

Investment- INR 10,000 - 30,000

Profit Margin- 40%


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Medium Investment Retail Businesses in India

1. Medical Store

There's no doubt that the medicine store is the most profitable retail business. People often require medicines during an emergency or illness. A medical store earns profit up to 60 000-80000 by investing 3-4 lacs in medicines. If managed properly medical stores can earn huge profits right away.

Medical Shop
Medical Shop is Another High Profit Margin Business in India

However, it also depends on the kind of drugs sold by the medical store upon how much profit it can earn. On average the pharmacy shop owner earns up to 20-25% on daily sales.

Investment- INR 3-4 Lacs

Profit Margin- 20-25%

2. Saree Shop

Saree is very popular and one of the best retail business in India and is worn by all segments of the market. If you are looking forward to starting your own saree business visit a couple of local shops to understand the trend in the market. Normally a good banarasi saree is very popular across India.

Decide which type of saree you want to sell, there are loads of varieties in Indian sarees which are very popular.

Investment- INR 20,000

Profit Margin- 40%

3. Gift Shop

Opening a gift shop in India requires serious planning and execution. The profit margin in running a gift shop is thin so there is less room for errors. The gift shop contains mostly personal and corporate gift items. You can also add gift cards to increase your sales.

Investment- INR 5 to 10 lakh

Profit Margin- 25%

4. Cosmetics Store

The demand for cosmetic products is increasing not only women but also men are conscious of their looks. If you have an insight into the cosmetics business and have the capital investment, then this business is for you.

Cosmetics store
Cosmetics store is One of The Best Retail Business in India 

Investment- INR 1 lakh to 5 lakh

Profit Margin- 40 to 60%

5. Cake Shop

Cake shop in India is a booming industry that is growing rapidly and also becoming high margin business in India. Many entrepreneurs are coming up with their own manufacturing units and catering domestic industry. You need to have proper packaging and marketing to boost your sales.

Investment- INR 5 lakh to 15 lakh

Profit Margin- 30%

6. Perfume Shop

Perfume is the next evolution of how people represent themselves. Perfume business requires moderate capital investments. You can also sell perfume from home because it will not require much investment.

Investment- INR 30,000 to 50,000

Profit Margin- 40%

7. Sweets and Snack Store

A Sweetshop is a profitable retail business in India because the sweets are produced in bulk quantities which requires less investment. You can price the sweets reasonably because there is no determined rate. you can also open a snack store to increase your profit.

Investment- INR 5 lakh to 10 lakh

Profit Margin- 60%


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High Investment Retail Businesses in India

1. Coffee Shop

A coffee shop is the most profitable retail business in India but it requires heavy investments. Running a coffee shop business is not easy you require positive cash flow and high sales to keep it going. The profit also depends on the locality of your shop.

Coffee Shop is Most Profitable Retail Business in India
Coffee Shop is One of The Best Retail Business in India

Investment- INR 10 to 20 lakh

Profit Margin- 20% to 80%

2. Ice Cream Parlour

Ice cream is loved by every age group and is a very popular food item. You can either consider opening your own brand which is quite difficult or you can consider starting a franchise for other reputed brands as it's also a high margin business in India.

Investment- INR 5 to 10 lakh

Profit Margin- 40%

3. Fast Food Restaurant

Fast foods are really famous in India and are already packed. This business is one of the highest profit margin business in India. If you are planning to open a fast-food restaurant in India. Take a market survey of different restaurants - how they work and manage their restaurants, the investments, and profit margin.

Investment- 10 to 50 lakh

Profit Margin- 40%

4. Car Wash

The automobile industry in India is very promising and the vehicle population is growing as well. Owning a car wash requires proper planning and huge investments upfront. The car wash zone is a highly lucrative retail business in India.

Investment- INR 25 lakh

Profit Margin- 40%

5. Two-Wheeler Showroom

Currently, the Indian motorcycle market has double-digit growth in sales. Opening a two-wheeler dealership is a lucrative business for young entrepreneurs. If you are planning to open a two-wheeler dealership you need solid capital investment in hand. This business demands serious hard-work and you need to have the proper knowledge about the business model.

Investment- INR 30 lakh to 50 lakh

Profit Margin- 30%

6. Beauty Salon

This business is the best retail business for women entrepreneurs who have the right knowledge. You can also open your salon in your home because that will save a lot of capital.

Investment- INR 15 lakh to 30 lakh

Profit Margin- 10% to 20%

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7. Restuarant

The food restaurant is one of the best retail business in India. you must conduct a survey before initiating the business. This business requires high capital investment and also the highest profit margin business in India. Also, select the menu and tariff properly before commencing the business.

Restaurant is Highest Profit Margin Business in India
The Food Restaurant is One of the Highest Profit Margin Business in India

Investment- INR 15 lakh to 30 lakh

Profit Margin- 15% to 20%

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Starting a retail business is never easy. The longer you stay in the business the more you learn and adapt. Understand your business model and conduct a market survey. There will be pitfalls in the business but remember great things take time.


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Is Retail Business Profitable?

Yes, Retail business in India is profitable not only in the metropolitan cities but also in small towns.

What is considered retail businesses?

Retail businesses can include grocery, drug, department, and convenience stores. Service-related businesses such as beauty salons and rental places are also considered retail businesses.

Are retailers in India covered under MSME?

No, wholesale and retail trade will not be categorized as MSME.

How to start a retail business in India?

  • Generate an idea and retail business plan.
  • Choose a name for your retail business.
  • Cover your legal basics.
  • Find the right location for your retail business.
  • Create a personalized experience.
  • Build vendor relationships.
  • Explore marketing opportunities for your retail business.
  • Plan for a grand opening.

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