Small Business Ideas in Delhi: Investment, Benefits, Market Potential & Profit Margin

Delhi, the national capital, ranks third in terms of per capita income. It is one of the most important commercial centres in India and has played a pivotal role in the overall development of the nation.

The small-scale business sector in Delhi has proliferated exponentially over the years. So, if looking for small business ideas in Delhi you can find many easy-to-setup options.

The following is a list of some of the most profitable small business ideas in Delhi

1. Grocery Store With Delivery Services

Grocery stores are an indispensable part of daily lives and one of the most fruitful low-investment business ideas in Delhi. Grocery stores providing delivery services are in high demand post the pandemic as most health-conscious citizens avoid crowded marketplaces and opt for online grocery delivery services.

Investment: ₹1 lakh to ₹2 lakhs

Set-Up Requirements

To set up this business, one must fulfil the following requirements:

• Complete the delivery registration process
• Obtain the FSSAI licence
• Rent a location in an appropriate location
• Hire reliable staff
• Implement a proper marketing strategy

Benefits

Below discussed are the benefits of this business:

• Immense possibilities of word-of-mouth referrals
• It is a growing market
• The business is easy to start 

Market Potential

The offline grocery business sector witnessed a 20% growth in the last quarter of 2022. Furthermore, the growing awareness among people post the pandemic and the transition from offline to online modes of shopping has set an unprecedented mark in the online delivery sector. Therefore, this is a progressing sector and is expected to witness a growth of CAGR 37.1% from 2021-2028.

Profit Margin: 5% - 20%

2. Fruit Juice Corner

Delhi is one of the hottest cities in India because of its unique geographical location. A fruit juice corner is the need of the hour in hot and humid summers where people can quench their thirst with a glass of refreshing juice. Fresh fruit juice and smoothies are in high demand for their nutritional benefits and for being an instant dose of energy in relentless summers.

Investment: ₹7 lakhs to ₹15 lakhs

Set-Up Requirements

To start this business, one must fulfil the following requirements:

• Complete the store registration process
• Obtain an FSSAI licence
• Rent a location
• Hire reliable staff
• Buy fruit-cutting machines
• Get fruit juice-making machines and equipment

Benefits

Below discussed, are the benefits of this business:

• High demand in hot and humid cities like Delhi
• Low cost of raw materials
• Enough room for creativity
• Can independently set the prices of juice and smoothies

Market Potential

The rising pollution levels have drastically impacted the temperature of Delhi and made it exceptionally warm in the summer. This inevitably makes a fruit juice corner a highly profitable low-investment business in Delhi. This sector has a whopping market value worth ₹3200 crores and is going to exhibit a CAGR of up to 30% in coming years.

Profit Margin: 50% - 70%

3. Room Rental Services

There is a huge migrant population in Delhi who settle here for work and educational purposes. The increasing number of migrants creates a high demand for rental apartments and paying guests. Thus it can be a feasible option for individuals who have enough vacant spaces in their homes and are willing to start a low-budget business in Delhi.

Investment: ₹50000 to ₹1 lakh

Set-Up Requirements

To start this business, one must fulfil the following requirements

• Complete the company registration process
• Obtain the trading licence
• Hire helpers for maintenance purposes
• Buy cleaning machines and arrange for WiFi and electricity services

Benefits

Below discussed are the benefits of this room rental business

• No extra investment needed
• Offers various tax benefits
• It is a regular source of income

Market Potential

As per reports, the demand for residential rental properties  increased at a rate of 29%  in the previous year. Additionally, the increasing prices of land and real estate in Tier 1 metro cities have made people shift to rented residential properties.

Profit Margin: 20% - 30%

4. Organic Food Supply Business

The majority of the Delhites are extremely health conscious and are watchful of what they consume. Besides, there is a large vegetarian population in Delhi who prefer organic fruits and vegetables for their nutritional benefits. Thus an organic food supply business will not only be an environment-friendly venture but also yield huge profits.

Investment: ₹7 lakhs to ₹10 lakhs

Set-Up Requirements

To start this business, one must fulfil the following requirements:

• Acquire the legal certifications
• Select a proper location
• Prepare a deal with the producer
• Choose a suitable crop
• Implement a proper marketing strategy
• Hire reliable staff

Benefits

Below discussed are the benefits of this business:

• Have huge demand in India and abroad
• Does not harm the environment

Market Potential

The organic farming market is considered to be the future of India’s agro-economy. The rising awareness of harmful chemicals used for farming has triggered a large number of people to shift to organic products. This is a booming sector that is further expected to prosper at a CAGR of 23.8% from 2023-2028.

Profit Margin: 30% - 50%

5. Air Pollution Masks Selling Business

Delhi has the worst air quality index in India and the rising air pollution is a major cause of concern. This has made Delhites resort to adopting precautionary measures to safeguard their respiratory health. Therefore, selling air pollution masks can be a convenient choice for entrepreneurs who are looking for small-scale business ideas in Delhi.

Investment: ₹1 lakh to ₹5 lakhs

Set-Up Requirements

To start this business, one must fulfil the following requirements:

• Obtain CE, GMP, and FDA certificates
• Obtain the trading licence
• Buy raw materials
• Buy necessary machines and equipment
• Rent a location in a clean and hygienic environment

Benefits

Below discussed are the benefits of this business:

• Raw materials are cost-effective
• The demand is increasing rapidly post the pandemic

Market Potential

There has been an increasing demand for face masks post the pandemic. This sector will acquire a market value worth ₹ 7800 million. Besides, it will accelerate at a CAGR of 19% by 2028.

Profit Margin: 30% - 50%

6. IAS Coaching Centre

Delhi hosts multiple IAS coaching centres and has thousands of aspirants visiting the city with a dream to crack the much coveted UPSC examination. A coaching centre helps fulfil the dreams of aspirants and is one of the most fruitful ventures to start with.

Investment: ₹60000 to ₹1 lakh

Set-Up Requirements

To start this business, one must fulfil the following requirements:

• Rent a location
• Buy study materials
• Hire trained staff

Benefits

Below discussed, are the benefits of this business-

• The number of UPSC aspirants is increasing every year
• The business can be conducted in a hybrid mode that requires minimum investments.

Market Potential 

The civil service market in Delhi has witnessed significant growth in recent years and is estimated to be valued at ₹ 58088 crores. Moreover, India has the world's largest youth population (between the 5-24 age group) and the coaching business has immense prospects in years to come.

Profit Margin: 10% - 30%

7. Garment Store

Delhi is home to Asia’s largest readymade garment market that sells garments worth ₹100 crores per day. The famous markets of Chandni Chowk, Karol Bagh, Sisodia Nagar, and Gandhi Nagar cater to the garment requirements of every age group. You can make a small investment business in Delhi by owning a garment store in any of the popular locations and expect to earn high profits.

Investment: ₹2 lakhs to ₹5 lakhs

Set-Up Requirements

To set up this business one must fulfil the following requirements:

• Complete the store registration process
• Obtain a trading licence
• Rent a location
• Buy garments from reliable sources
• Hire staff

Benefits

Below discussed, are the benefits of a garments business:

• Garments can be obtained at low prices from exporters
• Garment stores in Delhi attract customers from different parts of the country

Market Potential

India is one of the largest producers of garments and this sector contributes 2% of the country’s GDP. It is a booming sector exhibiting a CAGR of 12%.

Profit Margin: 30% - 60%

8. Street Food Corner

Delhi is the ideal destination for food lovers as its delicious and unique street foods have rarely disappointed anyone. Besides, Delhi is one of the most popular tourist attractions in India and has thousands of domestic and international tourists visiting the city every day. A street food corner can therefore be one of the most convenient businesses to start in the city.

Investment: ₹50000 to ₹1 lakh

Set-Up Requirements

To start this business, one must fulfil the following requirements:

• Complete the company registration process
• Obtain the FSSAI licence
• Rent a suitable location
• Buy necessary raw materials
• Buy the cutting machines and equipment
• Hire a few reliable staff

Benefits

Below discussed are the benefits of a street food business in Delhi: 

• The street food corner allows selling food to various people, especially if it is located at a primary location.
• Low investment costs
• Less number of staff requirement

Market Potential

India's food service market is expected to reach USD 79.65 billion by 2028, growing at a CAGR 11.19%.

Profit Margin: roughly 50%

9. Handmade Jewellery Business

Jewellery making is one of the most valuable crafts one can know because it can be conveniently transformed into a thriving business. There has been a persistent demand for intricately designed ornaments, especially among women. Therefore, a handmade jewellery business can be a viable option for people who wish to build their dreams by starting a small-scale business in Delhi.

Investment: ₹5 lakhs to ₹10 lakhs

Set-Up Requirements

To start this business, one must fulfil the following requirements:

• Get training to master the craft
• Buy jewellery-making products
• Hire trained staff
• Complete the legal formalities of the business
• Implement a proper marketing strategy

Benefits

Below discussed are the benefits of this business:

• There is enough room for creativity
• Prices can be decided as per the creativity and uniqueness of the product
• Does not require many staff
• Products can be sold on e-commerce websites.
• Does not require additional investment for marketing purposes because products can be showcased on social media profiles

Market Potential

As per reports, the Indian costume jewellery business has a market value worth ₹180 billion. It is expected to grow further at a CAGR of 7%  by 2027.

Profit Margin: approximately 16%

10. Purified Water Delivery

Pollution has drastically deteriorated the quality of water in Delhi and large stretches of the city do not have access to clean and hygienic water. This provides an opportunity for aspiring entrepreneurs who can run a successful business by delivering purified water to residential and commercial places.

Investment: ₹8 lakhs to ₹10 lakhs

Set-Up Requirements

To start this business, one must fulfil the following requirements:

• Complete the service registration process
• Obtain the trading licence
• Buy water-purifying machines
• Buy good quality containers
• Hire efficient staff
• Implement a proper marketing strategy

Benefits

Below discussed are the benefits of this business:

• The Return on Investment (ROI) is quick
• The profit margin is very high owing to the demand for purified and hygienic water

Market Potential

As per reports, the packaged drinking water business in India will project a market value worth ₹403.06 billion by the end of 2023. As per estimates, the market will expand at a CAGR of 5.8% from 2023-2027. With the tremendous rise in pollution and waterborne diseases, this sector will witness further growth in the coming years.

Profit Margin: 50% - 60%

11. Car Repairing and Servicing Centre

Delhi has the highest number of vehicles in India. As per statistics, the number of registered cars exceeded the 11 million mark back in 2019. Thus, there is a constant demand for car washing and repairing services in the city. So, this type of business will prosper in no time.

Investment: ₹10 lakhs to ₹50 lakhs

Set-Up Requirements

To set up this business, one must fulfil the following requirements:

• Complete the centre registration process
• Obtain a trading licence
• Rent a suitable location
• Buy car washing and repairing machines and equipment
• Hire staff

Benefits

Below discussed are the benefits of a car service centre business:

• There is high demand for such services in Delhi
• These services can be provided to residential complexes where most people own cars

Market Potential

The market size of automotive repair & maintenance services crossed USD 685.25 billion in 2021 and is poised to record a CAGR of over 5% by 2028.

Profit Margin: 40% - 60%

12. Printing and Binding Store

Delhi being an IT and educational hub provides various opportunities to aspiring entrepreneurs. An easily accessible Xerox centre with printing and binding services outside workspaces and educational institutions can yield high profits with very low investments.

Investment: ₹6 lakhs to ₹7 lakhs

Set-Up Requirements

To set up this business one must fulfil the following requirements:

• Complete the store registration process
• Buy printing machines
• Rent a suitable location outside offices, educational institutions, or coaching centres
• Hire staff

Benefits

Below discussed are the benefits of printing and binding store business:

• Printing machines are cost-effective
• This business does not require additional investments for marketing purposes
• Requires a few staff
• Does not take time to scale

Market Potential

India has one of the most profitable printing markets in the Asia Pacific region. The printing industry in India is expected to witness a growth of CAGR 3.4% from 2023-2028.

Profit Margin: 30% - 50%

13. Self Defence Training Centre

Women in Delhi have become increasingly conscious of their safety and are gradually adopting various safety measures. People are enrolling themselves in different self-defence classes to learn combating techniques. Individuals who are looking for small-scale business ideas in Delhi can set up a self-defence training centre.

Investment: ₹7 lakhs to ₹10 lakhs

Set-Up Requirements

To start this business, one must fulfil the following requirements:

• Complete the registration process of the centre
• Obtain necessary licences
• Hire well-trained professionals
• Implement a proper marketing strategy
• Hire a location with a comforting vibe in a clean and healthy environment

Benefits

Below discussed are the benefits of this business:

• Has immense potential in Delhi
• Requires minimum investment

Market Potential

The increasing number of crimes in Delhi have made people take precautionary measures for safety purposes. Self-defence training centres have witnessed rapid growth in clients in the last few years. 

Profit Margin: 30% - 50%

14. Driving School

Delhi has the highest number of registered cars, as per recent reports. Therefore, numerous people are willing to learn to drive to be more self-reliant and avoid additional costs. A driving school can be started with one or two cars and can be one of the most profitable small business ideas in Delhi.

Investment: ₹10 lakhs to ₹15 lakhs

Set-Up Requirements

To set up this business, one must fulfil the following requirements:

• Appear for the vehicle examination to acquire a driver's licence
• Buy or rent cars
• Rent a location for the office
• Hire staff

Benefits

Below discussed, are the benefits of this business:

• Can be started with just a few rented cars
• Can be operated with a few staff

Market Potential

The driving school market is increasing in demand as there are n number of students willing to learn how to drive. A small-scale driving school business can generate a monthly income of ₹3000 to ₹5000 from each student.

Profit Margin: 25% - 50%

The aforementioned small business ideas in Delhi can be considered to be one of the most feasible options for aspiring entrepreneurs. Delhi, being the startup capital of India, has budding prospects and offers a wide range of low-investment business options.