Kerala is one of the most investor-friendly states in India. As a 100% digital and the most literate state, Kerala resolves most of your business setup challenges. Other than working independence, creative satisfaction, and financial pros, you can tap several business opportunities by starting a business in this state which is located in the southern part of the country. If you are looking for ideas for setting up a new business, we’ve prepared a list of the most profitable business ideas in Kerala with low investment to help you figure out your options.

Ayurveda Tourism

Ayurveda is an ancient form of medicine that Kerala’s shores have cultivated over the centuries. Rather, Kerala is probably the only Indian state that uses Ayurveda as mainstream medicine. The use of natural oils and herbs in therapy promises holistic wellness which is why there’s a huge potential for the growth of Ayurveda tourism in Kerala.

Home-Based Online Business

These days, almost everyone can earn money from the comfort of their home which is true for the people in Kerala too. The best options for starting a profitable business from home in Kerala are blogging, affiliate marketing, freelance writing, dropshipping, online survey, and others.

Agarbatti Making

Kerala is an ideal place for starting an incense-making business in low investment. Here, you can easily find the raw material for making Agarbatti sticks. Since almost every household uses Agarbatti for aroma and religious reasons, the product has a demand round the year all across India which is why incense making would be a perfect small business with low investment.

Boutique Business

Kerala is a popular destination among domestic, as well as international tourists. So, if you are interested in setting up a small boutique, you can do so by keeping a unique collection of clothes that are popular among tourists. You can begin this business at an economic budget and can always add more collections of apparel later to expand.

In case you want to start an online clothing business from home, click here to know the step-by-step guide.

Banana Wafer Making

Banana wafers are one of the favorite snacks of Kerala. So, if you know how to make it properly, you can start this profitable business with very low investment in Kerala.

Spice Business

Kerala is a major producer of Indian spices like cardamom, clove, turmeric, cardamom, vanilla, and nutmeg. Fulfilling the market demand for spices would be a profitable business in Kerala with low investment. In case you don’t want to indulge in the manufacturing business of spices, you can choose other processes like grading, grinding, and packaging of spices.

Website About Kerala

If you know the local places in the state very well, start a website with information about nearby areas. On the website, you may include information like nearby tourist places, unsafe areas, local markets, the best places to eat nearby, etc.

Jewelry Making

Jewelry making may not be a small-budget business, but there’s a huge potential for gold and diamond jewelry making business in the state. Apart from these, pearl jewelry and fashion jewelry items are also in huge demand in Kerala. As the diamond jewelry-making segment is growing popular among youngsters, you may want to give this business a shot even with a small budget.


Well-recognized for its enthralling beauty, Kerala welcomes Indian and international tourists in huge numbers throughout the year. If you’re an amateur photographer, you can turn your passion into a business without spending too much. The initial cost for setting up this business would be for purchasing the camera and other necessary equipment. Depending on your choice, you can start this business on your own or can hire photographers to establish an organized photography company.

Rice Milling

Rice is Kerala’s agricultural staple food with around six hundred varieties of rice grown in the state’s extensive fields. Therefore, starting a rice mill business in Kerala would be a lucrative opportunity.

Grocery Store

This business is one of the safest ones to start anywhere around the country. However, due to the pandemic, starting a digital grocery store would be more beneficial. You can simply tie-up with a courier partner or a shipping aggregator to deliver the goods to end customers. NimbusPost, an automated shipping aggregator offers you a free sign-up and benefits like 27+ courier partners on a single platform. You can compare all courier partners’ shipping rates; pick a courier partner of your choice, and easily ship products across 29000+ pin codes within India.

Other than Kerala, if you’re looking for low-budget business ideas across India, click here to find some amazing ideas for small businesses you can start right away.

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