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Top 36 Most Profitable Small Business Ideas in Gujarat

best business ideas in gujarat

Gujarat is one of the leading industrialized states in India. Gujarat is considered the petroleum capital of India due to the presence of a large refining capacity set up by private and public sector companies. According to the World Bank report, Gujarat ranks top in ease of doing business among Indian states. Here we have compiled a list of the most profitable businesses in Gujarat according to the industry trend, raw material availability, and market potential.

Gujarat’s Industrial Policy offers attractive incentives and concessions for prospective investors. Gujarat is the hub of the chemical industry in India. Major industrial sectors are textiles, electrical engineering, chemicals, fertilizer,  petrochemicals, drugs & pharmaceuticals, dairy, cement, ceramics, gems, jewelry, etc.

Why Start a Business in Gujarat?

Gujarat is a perfect state in India to initiate and operate business ventures for various reasons. These include:

  • Strategic Location: Gujarat has a long coastline and proximity to ports. It makes a trade and export hub.
  • Pro-Business Environment: The government offers tax incentives and professional support for companies with business-friendly industrial policies.
  • Industrial Strength: Gujarat is the leading state in India in textiles, chemicals, and farm sectors.
  • Better Infrastructure: Gujarat boasts good roads, ports, and industrial zones that are proper bases for business operations.
  • Skilled Workforce: The state holds a store of skilled and semi-skilled employees.

List of 36 Business Ideas in Gujarat

1. Textile Business

textile business - best business ideas in gujarat

Gujarat is one of the prominent textile cities of India. Towns such as Surat and Ahmedabad hold significant textile manufacturers. One may set up a fabric unit, garment store or export business. Nowadays, environment-friendly textiles have started to pick momentum as a business idea also.

2. Salt Production

Gujarat has the longest coastline in India and is the country’s largest salt producer. Opening a salt production or packaging unit can be a good business venture. You can sell your products in the domestic market as well as export them.

3. Renewable Energy Business

The state is at the forefront of renewable energy, especially in solar and wind power. You can start a business in solar panel manufacturing, installation, or even consulting for renewable energy projects.

4. Real Estate Business

real estate business

There is an increasing demand for residential and commercial spaces, as cities like Ahmedabad and Surat.Hence, investing in real estate development or brokerage services can yield high returns.

5. Jewellery Manufacturing

The jewellery business is booming in Gujarat, particularly in Surat. One can begin a manufacturing or retail jewellery business, targeting the local as well as export markets.

6. E-commerce for Local Products

Develop an e-commerce website selling some handicrafts, spices, or textiles from Gujarat specifically. The rise in the culture of online buying these days suggests that this shall be a rather profitable business.

7. Logistics and Warehousing

Gujarat is well-located for logistics and warehousing businesses. Being close to the ports and industrial areas, this sector is growing.

8. Agro-Based Business

agro-based business

Gujarat is an agricultural state with a great contribution of crops like cotton, groundnuts, and spices. You can start organic farming, fertilizer production, or agro-machinery.

9. Art Supplies Store

A full-scale art supplies store is one of the most legitimate business ideas in Gujarat. This is a profitable retail opportunity for an individual who is passionate about art and has knowledge about the equipment that is essential for the artists. The gross margin is high in this business. You can start with a franchise also. For a small store, focusing on a niche is important.

10. Start an Online Business in Gujarat

If you are looking for a home-based online business, there are a lot of areas people of Gujarat can explore. Some of the low-cost online businesses you can start in Gujarat are as follows:

11. Start a Manufacturing Business in Gujarat

manufacturing business

Gujarat is one of the ideal states in India to start a small manufacturing business in India. If you have the necessary financial resources, consider launching a small manufacturing unit in Gujarat.

Suggested Read: Top Small-Scale Manufacturing Business Ideas

12. Fertilizer Distribution Business

Fertilizer contributes to a large segment of the state’s economy. Manufacturing primary and secondary nutrients are the key focus areas. Fertilizer is a steady business that shows no signs of fading. Fertilizers are extensively being used to improve per-hectare production of crops that can be used for food and industrial applications. Fertilizer distribution is one of the most profitable small business ideas in Gujarat and can be started with moderate capital investment.

13. Jeans Making Business

The Textile Industry has always played a pivotal role in the industrial and economic growth of the state of Gujarat. It is the largest producer (35%) and exporter (60%) of cotton and is the third-largest denim producer in the world. The state is known as the ‘Manchester of the East’ and ‘Denim City.’ With proper planning and substantial capital investment, jeans manufacturing can be initiated on a small-scale basis, Entrepreneurs can expect an approximate internal rate of return (IRR) of 21.31%.

14. Micronutrient Manufacturing Business 

A full-scale micronutrient manufacturing operation demands smooth raw material supplies. You can get all the required raw materials from the state inside.

Micronutrient manufacturing is one of the most legitimate business ideas in Gujarat to start with substantial capital investment. Micronutrient manufacturing involves an elaborate process of inventory management, production, packaging, and marketing.

15. Mobile Car Wash

car wash business

The mobile car wash is an emerging opportunity in the automobile service industry. In the five years to 2020, industry operators will continue to benefit from rising per capita disposable income, aiding industry revenue.

Furthermore, local regulations prohibiting residential car washing are expected to become more common, generating a larger client base for industry operators. The mobile car wash is one of the most profitable business ideas in Gujarat to start with moderate capital investment.

16. Mobile Spa Business

The mobile spa is a profitable business model for not only metropolitan cities but also Tier 2 and Tier 3 cities. This business provides services to people who just can not make time in their busy schedules to allow themselves the luxury of a spa. Even if you don’t have any formal training, there are so many resources available online and in books to get yourself started.

17. Night Club

In this business, small companies can compete effectively by serving a local market, offering unique products, and entertainment, or providing superior customer service. Personal income and entertainment need to drive demand for the nightclub. The profitability of individual companies depends on the ability to drive traffic and develop a loyal clientele. Owning and running a nightclub can be a very exciting, luxurious, and lucrative business for an entrepreneur.

18. Pet Related Business

The pet industry is growing rapidly. People are buying more pets nowadays and spending a lot of money on them to give the ultimate comfort.

Pet lovers and passionate individuals can initiate pet-related businesses part-time also. According to the market study, freshwater fish, cats, dogs, birds, reptiles, horses and saltwater fish are the most popular pets globally.

19. Public Relations Agency

The future is bright for the public relations agency. Public relations are considered the interaction of a business with its customer base, and or with prospective customers. Public relations professionals work with print media, electronic media, and also with digital media.

20. Diamond Cutting and Polishing

diamond cutting - best business ideas in gujarat

Surat is the diamond capital of the world in the state of Gujarat. Starting a business in diamond cutting and polishing is very lucrative if one has skills and resources.

21. Spices Export

Gujarat produces a variety of spices. You can start a spice processing and export business to tap into domestic and international markets.

22. Cold Storage Facility

Storage problems are usually a problem in the farms of Gujarat. Cold storage will help the produce from agriculture get preserved, hence no wastage.

23. Fisheries and Aquaculture

Fisheries and aquaculture businesses can be initiated along the coastal areas of Gujarat. Fish farming or export of seafood business can be initiated.

24. Chemical Manufacturing

Gujarat is ahead in the chemical business. Setting up a small chemical manufacturing unit will be a great idea to be started as it is lucrative in business.

25. Education and Coaching Centers

The State takes education as the priority, so students, as well as working professionals, can be served by setting up a coaching center or skill development institute.

26. Organic Farming

Increasing health and environmental consciousness is propelling organic farming forward. Organic vegetables, fruits, or spices can be cultivated and sold.

27. Open a Food Truck and Restaurant

pic of a food truck

Starting a restaurant or food truck focusing on the popular Gujarati dishes would attract people living in that place as well as tourists visiting. Packaged snack businesses have great demand also.

28. Automobile Spare Parts Business

Since there are numerous automobile plants in Gujarat, the demand for spare parts is increasing day by day. You can establish a manufacturing or distribution unit.

29. Open a Fashion Design Institute 

You can start a fashion design institute in the state of Gujarat. Sufficient knowledge of the subject, an artistic mind, and adequate experience in the course are important. As people are becoming more fashion-conscious, apparel and accessories companies are hiring people with various fashion design portfolios. So, the demand for fashion design institutes and courses is rapidly growing.

30. Solar Equipment Manufacturing

The government is promoting renewable energy, and thus there is a requirement for solar equipment. Manufacturing or trading solar panels and accessories will be a good business.

31. Dairy Farming

Gujarat is a leader in dairy, and brands such as Amul originated from Gujarat. Starting up a dairy farm or a milk processing unit has been a rewarding business. Even organic dairy is an option you can consider to capitalize on the trend of health consciousness among consumers.

32. Tourism Business

Gujarat has a rich culture and heritage that attracts tourists from all over the world. Business opportunities exist in the form of travel agencies, homestays, and eco-tourism ventures at Gir National Park, the Rann of Kutch, and Somnath Temple.

33. Food Processing

Agriculture is a major sector in Gujarat. Starting a food processing unit for products like spices, pickles, or frozen vegetables can be profitable. Exporting processed food items is another viable option.

34. Event Management

Gujaratis love grand celebrations. Starting an event management company for weddings, corporate events, and festivals can be highly rewarding.

35. IT and Software Development

Nowadays, in this increasingly digitalized era, starting an IT or software development company is a promising idea. You can focus on app development, website creation, or digital marketing services.

36. Handicrafts and Artisanal Products

Gujarat is well known for its handicrafts, which include Bandhani, Patola sarees, and wood carvings. Starting a handicraft business or exporting these items can be a lucrative option.

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