The Indian manufacturing sector is changing rapidly. Initiatives such as PM-Mitra mega textile parks (with a gargantuan investment of ₹4,445 crore), greater opportunities for export, and a faster rate of adopting technology are all making it easier for new players to enter the market. Moreover, consumers are demanding sustainable products. Did you know 66% of Indian shoppers check for organic authenticity? As well, global shoppers are looking for reinvented heritage goods.
The most important factors are still where to invest for start-ups and entrepreneurs. In this article, you’ll learn the most relevant market research, import export analytics, and upcoming projects to help you navigate 35 manufacturing business ideas for startup. What’s more is that NPCS helps with market research for detailed business plans, process flow diagrams, capacity planning and even financial analysis.
1. Agarbatti (Incense Sticks)
Agarbatti has a loyal consumer base all around the world. For start-ups, there’s the potential to grab new customers with bamboo sticks and fragrances that are eco-friendly. NPCS can help in mapping the process flows in blending the aromatic resins, rolling, drying, and packaging.
Related: Start Your Profitable Agarbatti Business
2. Making Jewelry
Jewelry made by hand sells well in both global and domestic markets. India’s e-commerce jewelry industry grew by 12 percent in 2024 as it offers clear-cut pricing and authentic certification. Consider using gold, silver, or beaded jewelry to keep the initial investment low.
3. Handicrafts
This sector provides support to rural craftsmen and brings in export earnings of 1.7 billion US dollars. There is also international demand for sustainable decor and woodworking. Small businesses can also produce and sell bamboo crafts, terracotta, or hand-loom textiles through online platforms.
4. Textile Industry
Textiles provide jobs for millions of people, as well as the PM-MITRA scheme, which is establishing seven mega parks to reduce expenses and draw international investors. New businesses can concentrate on one type of fabric, such as bamboo fibers or Kashmiri shawls. This would allow them to streamline and master the supply chains and quality control. NPCS can assist in designing the plant layout and estimating the capital needed for looms, dyeing, and finishing lines.
5. Organic Farming & Agro-Based Products
With the surge in the popularity of organic foods, India’s organic market reached approximately $2 billion in FY 2023. There are opportunities to market organic spices, pulses, or herbal teas from regions like Kerala and Uttarakhand. Based on APEDA’s report, 66 % of customers actively look for organic certification validation. NPCS aids in obtaining certification and export documentation.
6. Biodegradable Carry Bags
India’s plastic ban is fueling demand for biodegradable and industrially compostable bags. From 2024 to 2029, the global market for biodegradable materials is expected to grow at a 21.3% CAGR. Start-ups are in a prime position to manufacture bags from corn starch, cassava, or banana fibers and market them to grocery stores and corporate clients. Start-ups should research raw material sources, antis trust legislation compliance, and extrusion machinery costs.
7. Herbal and Ayurvedic Products
India is a major supplier of herbal products and medicinal plants. The Ministry of Ayush has initiated schemes supporting the export of Ayurvedic, Unani, and Siddha products. Herbal supplements and essential oils are in demand and NPCS can assist in planning the exporting processes.
8. Food Processing
There is an increase in the demand for ready-to-eat meals. Small businesses can manufacture pickles, jams, dried fruits and even artisanal chocolates. NPCS can outline the required hygiene measures and FSSAI-compliant packaging technology in their reports.
For more detailed information, check our Project Reports
9. Kitchen Utensils
The growing cookware market is driven by a large middle class in India. There is a shift in demand towards non-toxic ceramic and durable steel cookware. The market for kitchenware is rapidly expanding. Startups can venture into manufacturing induction compatible pans, pressure cookers, and eco-friendly bamboo kitchen accessories. Compete on price and quality to stand out from the competition.
10. Concrete Blocks
Autoclaved aerated concrete (AAC) blocks and interlocking pavers offer thermal insulation and durability. The growth market for concrete blocks is substantial; TechSci Research values the market at US$ 3.62 billion in 2024, rising to US$ 6.16 billion by 2030. There is an opportunity for startups to benefit from construction booms and infrastucture government spending, especially in developing countries.
11. Floral Foam
Foam is a material utilized in flower arrangements and events. The global market is projected to grow from US$5.60 billion in 2024 to US$9.44 billion by 2030. Sustainable foams from plant sources represent an opportunity. Entrepreneurs can create biodegradable variants to target florists and event planners.
12. Sodium Hydrosulphite
This reducing agent is essential for dyeing textiles, bleaching pulp, and even for some food preservation methods. Manufacturing requires specialized chemical reactors and has strict environmental compliance. Greener reducing agents can offer a competitive advantage.
13. Maize Starch
Maize starch is utilized in the food industry, pharmaceuticals, and in industrial adhesives. The market is expected to grow from US$23 billion in 2024 to US$44.5 billion by 2032. Startups can focus on producing tailored modified starches for these markets and tap into domestic and export opportunities.
Related: Manufacturing of Biodegradable Tableware From Corn Starch (Maize Starch or Corn Flour)
14. Galvanizing and Roll-Formed Guard Rails
Road and highway safety barriers are required. There will be an increase in the need for roll-formed and galvanized crash barriers due to the accelerated construction of roads. Analysts project the market will grow from US$8.66 billion in 2020 to US$9.35 billion by 2032, and long-term government contracts deliver steady revenue despite requiring significant investment.
15. Automated Vehicle Scrapping Processes
India has initiated a scrappage policy for vehicles, which promotes the organized dismantling for recycling of end-of-life vehicles (ELVs). There is a prediction that the global market for scrapping vehicles will increase from US$82.03 billion in 2024 to US$154.94 billion by the year 2032 with a CAGR of 7.07 %.
16. Extracting Silica From Ash
Applying the right techniques, the byproduct of rice mills, which is the rice husk ash, can be a rich source of silica. The market is projected to grow from US$ 3.40 billion in 2020 to US$ 5.28 billion in 2032. Startups based close to rice mills are in a better position to process ash into high-purity silica which is needed in the construction and plastic industries.
17. Carbon Black
As a filler in tires and industrial rubbers, carbon black is one of the most used products in the elastomer industry and showcases the world’s growing appetite for carbon products. With the carbon black market estimated at 22.35 billion and expected to grow to 40.1 billion by 2032, there are entrepreneurial opportunities to explore sustainable manufacturing through tire pyrolysis, catering to the electronics and ink markets.
18. Concrete Sleepers
The market for prestressed concrete sleepers is anticipated to grow from USD 6.20 billion in 2020 to 10.1 billion by 2032 at a 7.2 percent CAGR. For this segment, construction of precast railway sleeper plants comes with the opportunity to improve quality management through streamlined production processes.
19. Rice Husk Pellets
Rice husk pellets are a form of renewable biomass used in power stations, boilers and energ plants. These are expected to rise from 2.6 billion to 4.5 billion USD in the same timeframe with a CAGR of 7.53 percent. Setting up pellet plants near rice mills would provide a steady supply of raw material, and early-stage industrial customers and export opportunities would help address the global demand for biomass fuel.
20. Sodium Metabisulfite
The preservatives market has seen metabisulfite become a forerunner in the market, with expected growth of 0.48 billion by 2032. The sector has a tough market with the infusion of services, including chemical synthesis. Strict quality and safety compliance regulations, like the use of other chemicals, make this industry as a fast-growing sector.
21. Curcumin Extraction
Curcumin is the active component found in turmeric, and it possesses anti-inflammatory and antioxidant attributes. There is a great opportunity for entrepreneurs to invest in solvent extraction equipment in the nutraceutical, cosmetics, and food industries.
22. Tipper Body Building
Tipper bodies are important for the transportation of construction materials. The anticipated growth is from 49.01 billion in 2024 to 69.42 billion by 2032. The fabrication of these bodies requires skills in metal forming, welding, hydraulics, and customization. Increased government spending on construction projects provides consistent business.
23. Laminated Acrylic Sheets
Acrylic sheets are applicable in the furniture industry, for signage, and in car dashboards. The market for these products is expected to grow from 4.67 billion in 2024 to 8.37 billion by 2032. There is an opportunity to refine the market by producing laminated or coated protective acrylic that is UV resistant, anti-scratch, or design printed.
24. Sanitary Napkins
The menstrual hygiene market is expected to grow from 28 to 38 billion by 2033. There is an opportunity for entrepreneurs to manufacture pads that are biodegradable or reusable and sell them from automated production lines.
25. The Green Business of E-Waste Recycling
As with anything else, modern electronics have a limited lifespan. As people obtain new devices, the piles of trash grow. Recovering precious metals and plastics not only generates good revenue, but it is also important for the environment. According to market analysis, the recycling market for e-waste is estimated to grow from 30.4 billion in 2024 to 94.2 billion in 2032 with a CAGR of 13.4 percent. Plants that recover metals, glass, and plastics offer good returns and support the environment.
26. Green Hydrogen Electrolyzers
The Kandla green hydrogen facility from the Deendayal Port authority showcases India’s clean energy ambitions. This proves that it is in India’s ability to produce the electrolyzers and storage tanks, reducing the imported equipment loads, thus showcasing self-reliance. Green hydrogen is part of the National Green Hydrogen Mission, and analysts suggest that the demand will grow by over 20% CAGR. Start-ups can produce the stacks and other components. NPCS can design the feasibility reports covering the other components that include the plant layout and integration of renewable energy in addition to the safety standards.
27. Extraction and Export of Essential Oils
CHEMEXCIL (Ministry of Commerce & Industry) projects India’s essential oil exports will reach USD 323 million in 2023–24, up from USD 311 million in 2021–22, with the overall market growing at a 7.5%. There is an opportunity to export distilled oils of lemongrass, sandalwood, and lavender to the USA, Germany, and Japan. Export-oriented essential oil marketing has great potential because CHEMEXCIL provides market intelligence and export incentives.
28. Manufacturing of Solar Panels
India is projected to reach a renewable power capacity of 500 GW by the year 2030, which creates a huge market for the PV (photovoltaic) modules. Start-up companies have the opportunity to manufacture components like the backsheets and frames as well as assemble entire PV solar panels. Other policies like the PLI (Production Linked Incentives) as well as the PV modules duty protection also make the whole industry attractive. NPCS can assist in organizational structure on facility layout, glass and silicon wafer supply chains, quality standards, and cost forecasting.
29. Rare Earth Magnets
Rare earth magnets (neodymium–iron–boron) are essential components used in electric vehicles (EVs), wind turbines, and electronics. India’s market for rare earth magnets is estimated to be worth 637.4 million in 2024, growing to nearly 1 billion by 2033. The establishment of magnet production units serves to lessen reliance on Chinese imports and strengthen important strategic industries.
View our Handbooks for more detailed knowledge
30. Lithium-Ion Battery Cells
Electric vehicles (EVs), electronics, and energy storage components drive the demand for lithium-ion batteries. In addition to securing the supply chains, establishing cell manufacturing plants will aid in reducing imports. Start-up companies can focus on Li-Fe-PO4 or NMC chemistries and collaborate with automotive original equipment manufacturers (OEMs). Government policies, such as the PLI scheme for ACC (Advanced Chemistry Cell) batteries, offer funding and incentives.
31. EV Battery Recycling & Refurbishing
Recycling batteries is important as EV adoption grows, especially recycling batteries for cobalt, nickel, and lithium. Start-up companies can set up recycling plants or refurbish batteries for secondary uses in stationary storage systems.
32. Using Agricultural Remnants for Biodegradable Packaging
Besides bags, agricultural byproducts like sugarcane, wheat straw, and rice husks can be shaped into disposable cutlery, plates, and even packaging. There is already a market for these products due to the push to ban single-use plastics. Local suppliers can market the products to restaurants, cloud kitchens, and even export them.
33. Local Production of Specialty Chemicals to Replace Imports
India spends a substantial amount of money on importing bulk and specialty chemicals such as phenol, acetone, and methanol. The government has recently shifted its focus towards “Atmanirbhar Bharat.” Manufacturing these chemicals locally would reduce the import cost and provide employment opportunities. NPCS can help by designing the plants and selecting the appropriate catalysts and feedstock.
34. Manufacturing Drones
Agriculture, logistics, surveying, and even defense are using unmanned aerial vehicles (UAVs). The local production of drones and their various components (frames, flight controllers, and battery packs) will also support the growing demand and is in accordance with the Indian drone policy. Agricultural spray drones and last-mile delivery drones are potential focus areas for start-ups.
35. Additive Manufacturing (3D Printing)
3D Printing, also referred to as additive manufacturing, allows the production of custom parts in low quantities, and even the design of them quickly. The healthcare sector, especially for prosthetics, as well as the aerospace and automotive industries, are starting to adopt these technologies. There is a growing demand to set up a 3D printing bureau and to produce advanced filaments.
For more information, check out our related videos
Lessons from India’s Business Icons
A successful entrepreneur’s story is always a great source of learning. Dhirubhai Ambani transformed a single textile mill into a sprawling diversified conglomerate, showcasing the effectiveness of scaling and vertical integration. We also saw JRD Tata broaden Tata’s horizons into steel and aviation, exemplifying ethical leadership and industrial innovation. Narayana Murthy co-founded Infosys, demonstrating how a small startup with a global vision is capable of building a world-class company.
Kiran Mazumdar-Shaw literally pioneered biotech manufacturing by launching Biocon from a garage lab. Falguni Nayar, founder of Nykaa, epitomizes the disruption of an established market through harnessing digital platforms and supply chains. These examples illustrate customer and market focus, strategic diversification, and grit.
The Importance of Feasibility Studies
In manufacturing, there is a great deal of discipline in planning that must be followed. NPCS offers Market Survey cum Detailed Techno-Economic Feasibility Reports that encompass manufacturing processes, capacity planning, process flow diagrams, machinery and raw material requirements, and complete project finances. Such reports will allow entrepreneurs to evaluate profitability, understand market demand, assess environmental compliance, and secure financing. Partnering with NPCS is a smart move, whether you are into agarbatti production, electrolyzers, or essential oils as it mitigates risks and expedites successful outcomes.
Find the Best Idea for Yourself With our Startup Selector Tool
Conclusion: From Imagination to Industrial Impact
The year 2025 poses great prospects for the manufacturing industry in India, including sustainable consumer products, specialty chemicals, clean energy, and advanced materials. The market also indicates growing demand in several sectors, including incense sticks approaching US 2 billion, rapidly growing floral foam and maize starch industries, green hydrogen with an expected 20% CAGR, and essential oils exports projected at USD 323 million.
Entrepreneurs can profit by adapting to government policies and export markets, utilizing NPCS’s feasibility studies, and turning ideas into profitable and scalable businesses. This creates the next wave of industrial innovation by using strategic planning, sustainable practices, and innovation.
