Introduction to profitable retail businesses in India: Retail industry in India has emerged as a fast-paced industry 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 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.
A Guide to Profitable Retail Businesses In India For Beginners
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 businesses 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
Low Investment Retail Businesses in India
1. Kirana Stores
Kirana Store is one of the best profitable retail businesses 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.
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, DVDs, school books, and stationery items can be stacked in a stationery shop.
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 a 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 decide 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
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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
The 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 outfits 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 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%
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 a profit up to 60,000 to 80,000 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 businesses 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 Banaras saree is very popular across India.
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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.
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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
Cakeshop in India is a booming industry that is growing rapidly and also becoming a 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%.
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 Businesses 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 businesses 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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