For centuries Punjab has been known for its contribution to Indian agriculture. Today, with the modernisation of the economy, Punjab has emerged as an epicentre for various entrepreneurial ventures. Owing to its easy accessibility to New Delhi, small business ideas in Punjab are economically viable and promise exponential growth.

The Made in India campaign, along with an increased drive for locally made items, has given a new lifeline to the farming, industrial and service sectors across India. Here is a list of small-scale industries in Punjab which are currently offering the maximum ROI and promising future prospects.

Check out the list sorted as per the CAGR (Compounded Annual Growth Rate) of the businesses.

1. Organic Farming

As opposed to traditional farming, organic farming in Punjab offers a better profit margin. This method of sustainable farming is beneficial from the ecological perspective as well. Presently, the organic farming sector in India is at a booming stage. Market research shows, like the European countries, organic farming is going to be the next big thing in India in the coming decades. Making it one of the best businesses to start in Punjab with low investment. 

• Investment - ₹5 lakh – ₹10 lakh.
• Resources – Farmland, Seeds, Crop residue, Animal manure, Legumes, Green manures, Biofertilizers.
• Market Demand – The organic farming industry in India is estimated to grow at a rate of 23.8% during 2023-28.
• Profit Margin – ₹1.3 lakh per month.

2. Food Delivery and Catering

In recent years, the food delivery industry has picked up in India. Rapid urbanisation and access to the internet have made it a much-coveted service in Punjab. Having your own delivery infrastructure in food catering service can help you keep the costs minimum. So you can compete with the existing monopoly of food delivery services. Greater profit margins allow your business to break even and turn profitable in no time. 

• Investment –  ₹3 – ₹10 lakh.
• Resources – Workspace; FSSAI licence, Skilled professionals, Raw materials, Packaging supplies, Cookware and tableware, delivery infrastructure including personnel and equipment.
• Market Demand – The food delivery and catering industry in India is expected to grow at a rate of 19.88% by 2027.
• Profit Margin – ₹70000 – ₹1 lakh per month.

3. Dairy Farming

As rural Punjab is still filled with large grasslands, dairy farming is among the efficient small business ideas in Punjab. It is already a thriving business sector helping people earn millions a year. The market for dairy products in India is ever-increasing; with the right quality of services, it can yield generous profits within a year. As an established business prospect, setting up a dairy is also hassle-free.

• Investment – ₹10 – ₹20 lakh.
• Resources – Cattle, Grazing land, Equipment, Freshwater, Feed for animals.
• Market Demand – Estimated to grow at a rate of 15.4% during 2023-28.
• Profit Margin – ₹130 per day for a cow

4. Phulkari Business

source: medium

Phulkari is a form of embroidery native to Punjab. It's vivid colours and exotic designs have attracted both domestic as well as foreign tourists. An unorganised and cottage sector, Phulkari has immense potential in both national as well as in overseas markets. Since the textile industry projects significant growth, you can tap into this sector. Customised Phulkari apparel that caters to a diverse market can ensure a steady stream of revenue throughout the year. 

• Investment – ₹10 – ₹25 lakh.
• Resources – Machinery, Skilled labour, Supply chain, Raw materials, Dye.
• Market Demand – The Indian textile industry is estimated to grow at a rate of 14.59% CAGR during 2023-28.
• Profit Margin – ₹1.5 lakh per month.

5. Travel Agency

Travel Agency is among the low-investment business ideas in Punjab that you can explore in contemporary India. With minimal capital requirements, setting up an independent agency is very easy and requires little to no permits. Punjab is home to both domestic as well as international tourists. Offering package tourism deals can be a good start for attracting customers willing to go out on vacation. It requires little to no preparation, and you can earn profit with each deal. 

• Investment – ₹70000 – ₹2 lakh.
• Resources – Commercial licence, Computer, Office Space, Internet connection, Printer.
• Market Demand – Indian tourism sector is projected to grow at a rate of 13.47% by 2027.
• Profit Margin – ₹10000 – ₹30000 per month.

6. Event Management

The entertainment industry has seen rapid growth in both rural as well as urban parts of India. It is also one of the new business ideas in Punjab with low investment. Setting up a business requires minimal effort, and you can work with professionals on contract service. Keeping your event management company a one-person venture can be a good idea initially for maximum profits and to grow your business. 

• Investment – ₹50000 – ₹1 lakh
• Resources – Laptop, Internet, Mobile phone. 
• Market Demand – The event management sector in India is projected to grow at a rate of 12.43% during 2022-27.
• Profit Margin -  5-10% of an event budget

7. Seed Production Unit

The agricultural sector contributed to more than 17% of the state GDP of Punjab in the previous decade. With large arable lands and generational farmers, the state has a constant demand for seeds. Setting up a production unit within the state can help you keep the cost minimal, which can generate more sales. With proper research and development, you can keep production costs to a minimum while also producing high-quality seeds.  

• Investment – ₹1 lakh – ₹3 lakh.
• Resources – Machinery, factory space, skilled professionals, supply chain.
• Market Demand – This industry is projected to grow at a steady rate of 12.39% during 2022 -2028.
• Profit Margin – ₹40000 – ₹70000 per month

8. Automobile Repairing Business

Punjab has one of the highest numbers of privately owned commercial vehicles. Be it for transport or farming requirements, and automobiles are an essential commodity in this state. Hence, a well-equipped auto repair shop at a strategic location can be a great way to maximise your revenues. A car garage also comes with one of the highest profit opportunities on spare parts and labour charges, making it a lucrative business venture. 

• Investment - ₹2 lakh – ₹10 lakh.
• Resources – Garage space, equipment, skilled personnel, spear parts, Computer, Printer.
• Market Demand – This business is estimated to grow at 11.9% during 2020-2025.
• Profit Margin – 30 – 50% of the revenue per month

9. Bakery Business

Punjab is one of the largest wheat producers in India. The easy availability of raw materials such as wheat and dairy makes setting up a bakery business a smart and cost-effective choice. You can also get easily sanctioned loans as a bakery is a profitable venture in India. Bakery products are also in huge demand in Punjab, so a large demand will allow you to generate profit within a few months.  

• Investment – ₹80000 – ₹3 lakh.
• Resources – Oven, Food Processor, Freezers and refrigerator, skilled labour.
• Market Demand – The bakery sector in India is projected to grow at a rate of 9.6% during 2023-28.
• Profit Margin - ₹60000 – ₹1.2 lakh per month.

10. Micronutrient Production

source: levelshealth

As a significant chunk of Punjab's population is dependent on agriculture, there is a lot of potential in this state in the agro-industry. One of the small business ideas in Punjab that you can capitalise on today is to set up a micronutrient production plant. The upfront capital requirement is considerable; however, good quality products can help you penetrate a large market which can increase your profits.  

• Investment – ₹5 lakh - ₹20 lakh.
• Resources – Facility space, Specialised equipment, Skilled technician and raw chemicals.
• Market Demand – This production industry is projected to grow at a steady rate of 9.19% by 2029. 
• Profit Margin – at 20 – 30% of the revenue per month

11. Livestock Feed Production

Good quality animal feed has an exponential demand in domestic and international markets. Traditionally there are international suppliers, while the Indian market is considerably open for potential businesses. An effective production line with a good supply chain can make you turn this business profitable in no time. 

• Investment – ₹7 lakh – ₹15 lakh.
• Resources – Household and industrial food scraps, Facility space, Equipment.
• Market Demand – The overall feed production industry projects growth at a rate of 8.7% during 2022-2028.
• Profit Margin -  30 – 35% of the revenue per month

12. Homestay Service

Punjab has always been a favourite for tourists across the world. And tourism gives a lot of opportunities for the hospitality industry. Hosting a homestay requires minimal effort to set up and little capital investment. It is one of those small business ideas in Punjab which is future-proof as well. All you need is a house and a few essentials to start your business. An online presence can be beneficial for the promotional purposes of your business.

• Investment – ₹50000 – ₹1 lakh.
• Resources – Cooking materials, Kitchen space, Laundry.
• Market Demand – Market statistics show that the sector has grown at a rate of 10.7% and 7.4% CAGR for domestic and international tourists, respectively.
• Profit Margin – 20% - 35% of the revenue per month

13. Agro Business

Agriculture might be an important source of income in Punjab. But when it comes to the agro-based infrastructure, rural Punjab has a scarcity of storage facilities and transport services. This is where you can tap into this sector with an agro-based business model. Supplying agricultural equipment and a robust transport network can help you capture a sizable portion of the local market. 

• Investment - ₹5 lakh - ₹10 lakh.
• Resources – Agricultural equipment, cold storage, Warehouse, Fertilisers.
• Market Demand – Researchers estimate 4.9% growth of the Agro business sector between 2023-28.
• Profit Margin – 20% to 30% of the revenue per month

Hopefully, these small business ideas in Punjab will help you to choose your business niche and start it with low capital. Moreover, these ideas have the potential to observe fast growth and profitability. So, if you plan to start a small business in Punjab, you can try these ideas.