14 Best Small Business Ideas in Rajasthan
Rajasthan, the largest state in India, ranks 8th in ease of doing business in the country. Despite having an arid climate, the state has showcased significant development in various sectors.
Being a popular tourist destination and a state with a rich cultural heritage, Rajasthan offers budding prospects to aspiring entrepreneurs. Read on to get an overview of the various lucrative small business ideas in Rajasthan along with its market potentiality.
List of 14 Low Cost Business Ideas With High Profit in Rajasthan
The following is a list of small-scale business ideas in Rajasthan that are high in demand, require minimum assistance, and are expected to grow in future:
1. Sweets Shop
is no different. There is a constant demand for mouthwatering Chena, Malpua, Ghevar, Dilkushar and other popular sweet desserts in the state. People with excellent culinary skills may not think any further and lay the cornerstone of a sweets shop which is considered to be one of the most feasible small business ideas in Rajasthan.
- Investment: ₹2 Lakhs - ₹4 Lakhs.
- Resources: Licence, raw materials, office space/store, staff, packaging materials, storage space, equipment and machines, containers, etc.
- Market Demand: From 2023-2028, the Indian sweet industry will exhibit a CAGR of 19.1%. The current market value of this segment is ₹5230.7 crores.
- Profit Margin: 15% - 30%.
2. Online Boutique
weaved with utmost attention to every detail. The vibrantly designed motifs of the Bandhni, Bagru, Leheriya, and Kota Doria fabrics represent sheer class and finesse. Setting up an online boutique to sell these exquisite fabrics can be one of the highly profitable yet low-investment business ideas in Rajasthan.
- Investment: ₹2 Lakh - ₹5 Lakh.
- Resource: Licence, reliable textile suppliers, engaging website, office space, trained and trained staff, packaging materials, active social media handles, etc.
- Market Potential: By 2026, the textile business in India will have a market value worth ₹18 lakh crore. Consequently, the textile business sector is going to exhibit a growth of CAGR 14.59% from 2023-2028.
- Profit Margin: Up to 53%.
3. Homestays /Paying Guests/Hostels
Rajasthan has been a popular tourist destination, and millions of tourists visit here from different parts of the world. Besides, it has become a major educational hub that attracts thousands of young aspirants who come here to take coaching for IIT, NEET and other competitive exams. Therefore, offering hostels and home rentals can be highly rewarding for small business ideas in Rajasthan, especially in locations like Kota, Jaipur, and Jodhpur.
- Investment: ₹20 Lakhs.
- Resources: Well-furnished rooms, licence, electricity and water supply, caretakers, furniture, geysers, coolers, air conditioners, etc.
- Market Demand: The travel and tourism sector in India will progress at a CAGR of 13.47% from 2023-2027 and presently has a market value worth ₹1.5 lakh crores (approx).
- Profit Margin: 10% - 15%.
4. Dairy Supply
Rajasthan emerged as the largest milk-producing state in India in 2022. This sector plays a prominent role in the overall economic development of the state. Besides, milk being one of the most crucial components of an Indian diet has an ever-increasing demand. Therefore, a dairy supply business can be considered by those who are looking for low-investment business ideas in Rajasthan.
- Investment: ₹10 Lakhs - ₹20 Lakhs.
- Resources: Licence, animal breeds from reliable sources, storage space, animal food, machines, packaging materials, distributors, sheds, office space, etc.
- Market Demand: As per reports, the dairy market in Rajasthan acquired a whopping value worth ₹1114 Billion in 2022. The Indian dairy market was valued at ₹14899 crore in 2022 and is expected to grow further at CAGR 13.2% from 2023-2028.
- Profit Margin: Up to 30%.
5. Tour Guide Agency
Being one of the most visited tourist destinations in India, the state rewards every budding entrepreneur who wishes to guide its visitors. Whoever has detailed knowledge about the culture and history of the state may conveniently lay the foundation of a small yet professional tour guide agency. Rest assured that this low-investment business startup in Rajasthan will never lose its significance.
- Investment: Minimum ₹3 Lakhs.
- Resources: Licence, office space, computers, reliable staff, website, active social media handles, etc.
- Market Demand: Rajasthan registered around 14.9 million tourists in the first quarter of 2022. Moreover, by 2026, the travel and tourism sector in India will witness a CAGR of 11.38% and acquire a market value worth ₹96 thousand crores.
6. Wedding Photography & Videography
The rich cultural heritage of Rajasthan offers a royal vibe, which is highly appreciated by people who embrace art and culture. It is also the reason why the state has become a popular destination for weddings. This, in turn, has inevitably created a high demand for photographers. It provides a golden opportunity for amateur photographers who may easily transform their skills and passion into a thriving business.
- Investment: ₹1 Lakh -₹10 Lakhs
- Resources: Licence, camera, lenses, camera stands, responsive website, engaging social media handles, reliable staff, tripod, props, etc.
- Market Demand: In recent times, people spend a significant amount of money on customised photography and videography. This sprawling sector is all set to witness a growth of CAGR 11.35% from 2022-2027.
- Profit Margin: 25% - 50%.
7. Spice Business
With a wide variety of fresh aromatic spices, Rajasthan occupies the second spot in the country in terms of spice production. Therefore, a spice business in Rajasthan can be rewarding if one can successfully satisfy the customers with uniquely flavoured spices.
- Investment: ₹5 Lakhs - ₹20 Lakhs.
- Resources: Licence, reliable suppliers, packaging materials, grinding machines, packaging materials, pulveriser machines, staff, distributors, etc.
- Market Demand: As per statistics, the current market value of the spices market in India is about ₹160676 crore. It is further expected to grow at a CAGR of 10.8% from 2023-2028.
- Profit Margin: 60% - 70%.
8. Restaurant Business
A restaurant business tops the list of small-scale business ideas in Rajasthan. Rajasthani food has been a true delight for food lovers, and tourists who visit here relish each of the mouth-watering delicacies. Be it the sumptuous Daal Bati Churma, Pyaz Kachori or the Kathi Roll, every dish is unique and exhibits the cultural vibe of the royal state.
- Investment: Up to ₹15 Lakh (Depending on the size of the restaurant)
- Resources: FSSAI licence, location/space, machines and equipment, trained staff, furniture, decor items, raw materials, kitchen equipment and utensils, active and responsive social media handle
- Market Demand: The food service market in India is expected to grow at a rate of 9% and acquire an attractive market value worth ₹5.9 lakh crore in 2023. Besides, there is an option for online delivery where one may collaborate with online applications and deliver food to doorsteps
- Profit Margin: 30% - 50% (Depending on the quality of food and services)
9. Handmade Jewellery Business
There has been a persistent demand for handmade jewellery in the state. The credit goes to highly professional and experienced artists who relentlessly weave jewellery with precision. Therefore, artists must carefully evaluate a business plan and make productive use of the aesthetic talent that they have inherited from their forefathers.
- Investment: ₹10 Lakhs - ₹15 Lakhs.
- Resource: Licence, raw materials, trained staff, workspace, engaging website, active social media handles, packaging materials, etc.
- Market demand: The costume jewellery market in India will acquire a market value worth ₹17 thousand crores. Furthermore, this segment will witness a CAGR of 7% by 2027.
- Profit margin: 25% - 75%.
10. Carpet Making Business
Rajasthan is one of the leading producers of intricately designed carpets that are famous for their premium quality and vibrant designs. They exemplify brilliant craftsmanship and are in high demand across the globe. Thus, a carpet-making business can be one of the best options for skilled people who wish to commence an entrepreneurial journey here.
- Investment: ₹10 Lakhs - ₹14 Lakhs.
- Resources: Licence, carpet-making machines, trained and qualified staff, raw materials, active and responsive website, packaging materials, store/office space, storage space, etc.
- Market Demand: Indian carpets are globally famous for their intricate designs that epitomise magnificent architectural manoeuvre. The carpet business in India currently has a value worth ₹43 thousand crores. Furthermore, this sector will grow at a CAGR of 6.5% by 2028.
- Profit Margin: 20% - 30%.
11. Hand Fans
Rajasthan has harsh climatic conditions as the temperature rises to about 47 degrees and the electricity connection is also not strong. Hand-made fans offer a bit of respite to the locals in the scorching heat. Therefore, these easy-to-carry fans are often in high demand in the state. These types of small business ideas in Rajasthan are not only profitable but also employ several people.
- Investment: ₹50000 - ₹1 Lakh.
- Resources: Bamboo, colouring materials, scissors, trained staff, office space, etc.
- Market Demand: Handmade fans are made from bamboo and the bamboo craft segment in India has immense prospects. From 2021-2028 this sector will exhibit a growth of CAGR of 5.05%.
- Profit Margin: 40% - 50%.
12. Blue Pottery
The blue pottery of Rajasthan has been quite famous for its vibrancy and unique aesthetic charm. This exquisite craft is a beautiful amalgamation of Persian art and Chinese technology. Not to mention, it has been practised in Rajasthan for several decades. Blue pottery business is not only one of the most profitable small-scale business ideas in Rajasthan but also allows potters to showcase their brilliant workmanship to the world.
- Investment: ₹2 Lakhs - ₹5 Lakhs.
- Resources: Licence, clay, colours and pants, hand tools and equipment, distributors, packaging materials, office space, website and active social media handles, etc.
- Market Demand: From 2022-2030, the pottery market has been estimated to grow at a CAGR of 3.8%. Moreover, as per statistics, India exported pottery worth ₹258 Billion in 2022.
- Profit Margin: Up to 10%.
13. Pickle Business
Rajasthan is a foodie's paradise. It boasts a wide array of food that lingers in the taste buds for a long time. Besides, it is also one of those states where one may find a variety of mouth-watering condiments like pickles. Entrepreneurs who wish to be self-reliant may consider starting a pickle business in Rajasthan. It is not only profitable but also an interesting venture to start with.
- Investment: ₹10000 - ₹1 Lakh.
- Resources: Licence, raw materials, cutting machines, oil, spices, packaging materials, office space, website, etc.
- Market Potential: The pickle-making business sector will expand globally and witness a CAGR of 3.5% from 2019-2025.
- Profit Margin: More than 50%.
14. Leather Footwear Business
The leather industry is a booming sector in Rajasthan. Several artistic products are crafted from premium quality leathers made of camel hide. These include the popular 'Jooti' and 'Mojri' footwear which are often in great demand among tourists. This is yet another interesting low-investment business idea in Rajasthan that is often preferred by budding entrepreneurs.
- Investment: ₹5 Lakhs -₹10 Lakhs.
- Resources: Licence, leather, cutting scissors, machines and equipment, packaging materials, distributors, websites and social media handles, etc.
- Market Demand: India is the second largest producer of premium quality footwear and around 46.2% of the exported leather are footwear products. The market will grow at a rate of 0.4% in 2023.
- Profit Margin: 20% - 40%.