Profitable Business Ideas Under 5 Lakhs in India

Starting your own business doesn’t always require a massive investment. With careful planning and the right approach, you can launch a profitable venture even with a modest budget. If you’re looking for business ideas under ₹5 lakhs, several options across various industries offer low setup costs and high growth potential.

Whether you are looking to become self-employed or want to create a scalable model, here’s a curated list of 5 lakh investment business ideas that can help you take the first step towards entrepreneurship.

Food and Beverage Business

The food industry in India is always booming, making it an excellent option for anyone who loves cooking or serving. Even with limited capital, you can start small and expand gradually. Popular options include:

• Cloud Kitchen - Run a delivery-only restaurant from home or a rented kitchen space without investing in a dining area.
• Food Truck - A mobile kitchen offering street food, snacks, or beverages is trendy and profitable.
• Bakery or Dessert Shop - With rising demand for customised cakes and pastries, this niche is skyrocketing. 
• Home Bakery - You can begin by baking at home and selling in batches to generate a source of revenue.

These businesses require minimal space and equipment, making them ideal for a start-up under 5 lakhs.

Retail and Franchise Outlets   

Franchising is an easy way to start a business without building a brand from scratch. With an investment of ₹3–5 lakhs, you can open small outlets like quick-service restaurants, pharmacies, or stationery and gift shops. These options provide ready-made branding, training, and operational support, reducing the risk for first-time entrepreneurs. This model is ideal for those who want to leverage an established brand’s reputation while focusing on day-to-day management and growth, making it one of the most practical business ideas under 5 lakhs.

E-commerce or Online Business

Thanks to digital platforms, selling products online has never been easier. With limited upfront costs, you can create an online store and reach a wider audience. E-commerce is a cost-effective way to start a business under ₹5 lakhs. With minimal setup, you can launch an online store and sell products like customised merchandise, handmade goods, or even opt for dropshipping, where suppliers handle inventory and shipping.
 
Leveraging social media and digital marketing can help you quickly reach a wider audience. This flexible and scalable model is ideal for new entrepreneurs looking to tap into India’s growing online shopping market without heavy infrastructure costs.

Freelancing and Professional Services   

Freelancing is one of the most budget-friendly business ideas under ₹5 lakhs, especially for skilled professionals. You can offer services like content writing, digital marketing, photography, videography, or even legal and financial consultancy. 
These ventures require minimal setup; often just a laptop and internet connection, and rely more on your expertise than significant capital. They’re ideal for individuals looking to work independently, with the flexibility to scale over time based on demand and specialisation.

Education and Training Services

Education is a sector that continues to grow rapidly in India, creating opportunities for entrepreneurs to start small yet impactful businesses.
Education remains a thriving sector, offering lucrative opportunities for businesses under ₹5 lakhs, given the growing demand for learning and skill development in India. You can start coaching or tuition classes for school and competitive exams, offer online courses, or conduct workshops on skills like coding, language learning, or public speaking. 
With minimal investment in basic infrastructure or digital tools, this sector allows you to operate from home or a small rented space. It’s ideal for professionals or subject experts who want to leverage their knowledge, provide value to learners, and build a steady income stream with high scalability.

Health, Fitness, and Wellness

With a growing focus on health and fitness, small-scale wellness businesses are seeing significant demand. The health and wellness industry is thriving, making it an excellent option for businesses under ₹5 lakhs. You can start yoga or fitness classes online or in a small studio, offer diet and nutrition consultancy, or sell home-based organic products like herbal skincare and organic foods. 
These ventures require minimal setup costs and attract a steady, recurring clientele as more people focus on healthy living. With rising awareness about fitness and natural products, this sector offers high growth potential and is perfect for entrepreneurs passionate about health and lifestyle improvement.

Event Planning and Management

Event management has become a thriving sector with opportunities in both personal and corporate events. Event planning is a fast-growing sector with lucrative opportunities in both individual and corporate spaces. With an investment under ₹5 lakhs, you can offer services like birthday and small event planning, corporate event coordination, or wedding support services such as décor, logistics, and photography. 
This business requires minimal infrastructure since most resources can be rented, and it can be managed with a small team. Its flexible model, low entry cost, and high demand make it an excellent option for new entrepreneurs looking to build a creative, client-focused venture.

Building a Profitable Business with Limited Capital

Starting a business under 5 lakhs is not just possible but also practical in today’s entrepreneurial landscape. With options ranging from service-based ventures to scalable online companies, success depends more on strategic planning, creativity, and consistent effort than on heavy investment. By leveraging your skills, understanding market demand, and starting with a lean approach, supported by an affordable business loan if required, you can minimise risks while building a strong foundation. 

Over time, even a modest investment business idea can evolve into a profitable and sustainable enterprise, paving the way for long-term entrepreneurial growth.