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Top 5 Small Scale Industries in India

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Top 5 Small Scale Industries in India

Small Scale Industries – India is an excellent place for entrepreneurs because it is rich in natural resources and has a large workforce. When we look at how a large company grows, we usually see a small and singular space expansion. Mark Zuckerberg, for example, founded Facebook in his dorm room! On the other hand, capital and networking frequently prove to be significant roadblocks in the growth of many small businesses. While most entrepreneurial ventures begin with high hopes, funding is a significant impediment to success.

MSMEs are defined and classified by the Micro, Small, and Medium Enterprises Development Act of 2006. These classifications are based on investment in plant and machinery in manufacturing industries and equipment in service sector industries.

Many of these small industries are encouraging by the government through subsidies and funding. Because of the products they produce, these small-scale industries play an essential role in India’s secondary sector. Small manufacturing businesses have the advantage of being able to start at home or, at most, in a small rented space. Here is a list of top small scale industries in India.


Homemade chocolates have long been a popular treat among people of all ages. A wide range of chocolates is produced by a large number of small businesses, particularly in hill station regions. With rise in per capita income, chocolate is no longer regarded as a luxury or a delicacy but is instead consumed daily by the average Indian.

Toilet Paper and Rolls

Paper napkins and toilet paper are increasingly using in food, hospitality, and entertainment, three of India’s fastest-growing industries. Aside from business registration, these industries usually necessitate VAT registration. After all expenses, a paper napkin manufacturing unit started with an Rs. 10 lakh investment can generate approximately Rs. 1 crore in annual sales turnover and a profit of around Rs. 5-8 lakhs.

Sanitary Napkins

Sanitary napkins are a popular choice among NGO-run small-scale industries. It serves a dual purpose in many rural areas by providing employment for women and raising awareness about safe and clean menstrual wear. The establishment of these industries would cost between Rs. 3-35 lakhs, depending on the size of the unit, the machinery used, and the number of employees.

Candle Making

Its benefits many women by providing job opportunities in rural areas. From Diwali to Christmas, lights and candles are essential for many Indian celebrations. The candle manufacturing industry in India is rapidly expanding in terms of both production and diversification.

Camphor And Incense Sticks

India is the world’s largest producer of incense sticks, with products exported to several other countries. In terms of volume, the agarbatti or incense stick market is expecting to grow at a CAGR of more than 8% over the next few years. Due to increased self-medication, there is also an increase in demand for pharma-grade camphor among Indians. However, in India, camphor uses for religious purposes in 98 percent. If you want to know more examples about the primary sector – click here to know more about primary sector examples.

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