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Top 10 Profitable MSME Business ideas with low investment in 2022

  • Posted By SuperCA
  • On 18 August

Top 10 Profitable MSME Business ideas with low investment in 2022

MSME (Micro, Small, and Medium Enterprise) term was introduced by the Government of India in agreement with the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. The Indian government offers a myriad of benefits to MSMEs, so they can function seamlessly in the Indian as well as global market. It was initiated and is managed under the Ministry of MSME (MoMSME). MSMEs are entities engaged in the production, manufacturing, processing, or preservation of goods and commodities. They are further classified on the basis of investment and annual turnover as follows.



Turnover Threshold

Investment Threshold

Micro- Enterprise

Up to 5 Cr

Up to 1 Cr

Small Enterprise

Between 5 Cr and 50 Cr

Between 1 Cr to 10 Cr

Medium Enterprise

Between 50Cr to 100 Cr

Between 10 Cr to 20 Cr


These enterprises are considered the backbone of our Indian economy and contribute nearly 27% of the country’s GDP. In this article, we’ll discuss the best MSME business ideas which can be sustainable in this new era.


Documents Required for MSME Registration

- PAN Card, Aadhar Card
- Business’s Address Proof
- Copies of Sale Bill and Purchase Bill
- Partnership Deed / MoA and AoA
- Copy of Licenses and Bills of Machinery Purchased


Registration Procedure

Any enterprise that qualifies under the definition of MSME can obtain Udaym Registration under the MSME Act on the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates, or proof.

On registration, an enterprise will be assigned a permanent identification number to be known as “‘Udyam Registration Number”. An e-certificate, namely, the “Udyam Registration Certificate” shall be issued on completion of the registration process. It has lifetime validity unless canceled.

Registration can be done online by following the steps-

Move 1: Visit the Government MSME portal

Move 2: Fill the MSME registration form online with all required details by visiting

Move 3: Submit the application form along with documents, you shall receive a registration number

Move 4: After successful submission of the application, the authority will register the applicant’s business as MSME within a few working days

Move 5: MSME registration certificate shall be delivered by email or to the applicant's registered address.


Lists of 10 Profitable MSME Business Ideas

Handicrafts Seller

The sale of handicraft products is currently being promoted in numerous cities and states. Steps are being taken to make handicraft products reach every home in India including metalware, paintings, shawls, carpets, woodware, earthenware, embroidered goods, bronze and marble sculptures, etc. This could be a key MSME business in 2022.

Sanitary Napkins

Sanitary Napkins appear under nonwoven textures, which as a good come under specialized material. By taking up this initiative, you'll be empowering millions of girls and women to practice and achieve the right hygiene standards and at the same time, you'll receive outstanding government support from the government.

Online Business

Social media specialists, digital marketers, SEO experts, and website developers are in great demand these days. It can be started at ground level with zero investment just by the use of a smartphone, computer, and a high-speed internet connection are all that is required for such businesses.

Bakery Services

Bakery products are in high demand nowadays because of the joy they provide to festivities. From pastries and cookies to cakes and other bakery products, you may start your own bakery business with a small cost and create significant money.

Online Tutoring

After the Covid era, technologies have enabled students to study online from anywhere. As a result, you can work as an instructor from the comfort of your own home if you have a strong understanding of any teaching subject.

Jute fabrics products

There is a reasonable need for jute bags in India which makes it one of the best MSME businesses in India. Jute fabrics are tough, reliable, light, desirable, and more inexpensive than most of the textures earned from fibers and are extremely easy when sewn.

Hand Sanitizer and Mask

As per the current demand of time and scenario, the business of hand sanitizer and masks is another on-demand business. Nowadays, it becomes an essential thing to carry, to avoid germs. Masks can also be used in view of increasing air pollution in metro cities. Plus, it’s a profitable business that can be started with a low investment.

Food Catering

Food Catering is in demand on every occasion, whether it’s birthday parties, weddings, events, anniversaries, and so on. It’s a highly profitable business that just requires investment in raw material, labor, and buying tables, chairs, tents, and utensils. However, it has more investment than other ones, but it would be a boon if you opt for it.

Biscuit & Chocolate Making Business

The Biscuit and chocolate-making business is very lucrative. Additionally, you can initiate on a small-scale basis. The previous year’s annual report states that millions of people are consuming biscuits and chocolates. It is a conventional activity and an entrepreneur can initiate this business with low startup capital also.


Dropshipping is a retail business model where there is no need to buy and store products to be able to sell them. Without having to manage an inventory, the order is shipped directly from the third party to the customer. The business has already developed in the west and is currently booming in India.


Benefits of MSME Registration

However, registration of MSME is not mandatory, but if you choose to register, then there are many benefits that can be enjoyed by MSME firms after obtaining registration. Some of the benefits are:

➤ A lot of government schemes can be availed by MSMEs such as unsecured MSME loans, easy loans, micro business loans, subsidized rates, etc.

➤ Registered businesses with an MSME certificate will benefit and can avail of concessions as well from various government departments, including electricity.

➤ Exemption on excise and indirect taxes are provided.

➤ Avail tax rebates customized for MSMEs credit for Minimum Alternate Tax (MAT) and other special schemes from banks custom-made for MSMEs.

➤ ISO Certification Reimbursement

➤ Avail special rebates and concessions on patents and industry set-ups 

➤ Get credit guarantee schemes and financial support from the government

➤ Special consideration on International Trade fairs




Today, MSME provides employment to more than 12 crore Indians across the country. They are widely regarded as a source of economic growth and a way of achieving more equitable development. They are recognized for having the highest rate of economic growth. MSMEs have propelled India to new heights due to their low investment requirements, flexibility in operations, and ability to develop suitable native technology.