Gujarat is the fifth largest state by area in the western part of India. The state is known for its great cultural diversity, business opportunities, and local food. Gujarat is home to many historically significant locations like the ancient sites of Lothal & Dholavira, thousands of years old Somnath and Dwarkadhish Temple, Gir National Park, and the Statue of Unity. There is more to the list than this, but you get the picture.
Gujarat is known not only for its history but because of the number of successful entrepreneurs and businesses born and brought up in this state. Big conglomerates like Reliance, Sun Pharma, AMUL, etc., all started in Gujarat and found their way to the top. Today, we will talk about why Gujarat is still one of the best places in our nation to start a business and which are our top choices for new entrepreneurs in the market. So, let’s begin!
Why Should you Start a Business in Gujarat?
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- Geography: Gujarat is known to be a year-wide sun-soaked state, making it one of the best places for solar energy development. The state also has a coastal and a desert boundary, providing unique opportunities for tourism and different kinds of businesses.
- Government Support: Being the home state of the current Prime Minister of India, Gujarat has ample support from both central and state governments. Projects like the country’s first bullet train corridor, the world’s largest cricket stadium, the country’s first heritage site, and much more have all found their home in Gujarat. Both levels of government promote businesses to start their operations in the state and develop their economy, which is a testament to the fact that Gujarat stands first in the Ease of Doing Business ranking.
- Consumer Spending: The per capita income for a Gujarat resident stood at more than Rs. 2,00,000 annually, placing it tenth in the nationwide ranking. Higher income also means higher consumer spending. Higher spending makes Gujarat one of the greatest places for businesses to flourish in their early phases
List of Top 9 Business Ideas in Gujarat
1. Affiliate Marketing
Affiliate marketing is another of Gujarat’s top low-investment businesses. Terming the next generation of marketing techniques, affiliate marketing involves two parties – the marketer and the online retailer. A marketer earns a commission by promoting the retailer’s products. Every sale made through their promotion earns the marketers a handsome commission. You can also become a full-time affiliate marketer. You only need a large number of people and good affiliates to partner with. You can gather this audience by venturing into fields like Content Writing, YouTuber, Content Creator etc.
2. Tourist Agent
Starting our list with a comparatively lower investment venture, a tourism agency is one of the best businesses in Gujarat. According to the latest statistics, Gujarat saw a footfall of more than 2.4 crore travellers in 2021, while this figure maxed out at more than five crores in 2019. So, you get the idea. A tourism agent is generally responsible for ensuring a smooth vacation for their clients. It may include hotels and travel tickets to sightseeing and local guides. Tourist agencies might be your field if you are good at interacting with people, building networks, and are passionate about travelling.
3. Salt Production
When we talk about salt, we refer to sea salt, not mountain salt. Gujarat has the longest coastline in the country – 1,600 km- providing abundant seawater availability to produce salt. There is no lack of demand for sea salt in Indian and International markets. You can start your processing and production unit or white-label your extraction to sell it under someone else’s brand.
4. Textile Production
There is no secret that Gujarat is the hub for textile production in India. The state has more than half a share of textile processing units in the country. Cities like Surat and Ahmedabad are known for their cloth production across India. The state not only produces finished clothing products but is also one of the largest producers of cotton in the whole country. You can venture into either field – raw material or finished products and create a great business for yourself.
Moreover if you are also thinking of starting a profitable business in your village but don’t have enough funds? Don’t worry, have a look at our blog featuring low budget business ideas in village which can be initiated with low initial investments.
Since there is a large production of cash crops and eatable crops, farmers need products like fertilizers, pesticides, manure, etc., to create a healthy cropping year. You can deal in agricultural machinery, seeds, chemicals, and tools and create a major success.
6. Storage Areas
Gujarat does not only have a high production of cotton but also fruits and vegetables like onions, pomegranates, bananas, potatoes, mango, etc. These products require hygienic and safe storage areas to be ready for direct use or further production. You can venture into the storage industry by creating cold storage and go downs to keep these products safe throughout the year.
Business Ideas for Other States:
7. Solar Power
Gujarat receives sunlight 12 months a year. There is no shortage of opportunities when it comes to solar power. Entrepreneurs can look to become a trader in solar power products like panels, batteries, lights, etc., or can even become a part of this booming industry by setting up production plants for different elements required. Large solar parks are also being developed in the state giving ample opportunities for newbies to grow their businesses.
8. Waste Management
Surat ranks second in India’s list of cleanest cities, standing just behind Indore. The state and central governments are motivated to bring more cities into this list by recycling, reusing, and reducing waste in the state. Entrepreneurs have a great opportunity to set up waste management plants and work with government or private individuals to create environment-friendly products. The waste management industry has seen immense growth recently due to Paris Agreement commitments, increasing electronic waste, and global warming.
Gujarat has a long list of indigenous and traditional products in the clothing and arts & crafts industry. As a trader, you can help these local voices reach throughout the country and the world. Traders can earn handsome commissions by making great sales and selling products for a margin.
Things to keep in Mind
- Budget: Starting a business can be a hard task. Creating a successful business may require a lot of planning and effort. However, the thing that is most important while starting a new business is Budget. Keep a figure in Mind before choosing any industry to get into. You should know your chosen business’s fixed and working capital requirements. Going over the top in the beginning stages of your business can negatively impact you.
- Competition Analysis: Every industry has some level of competition. Gujarat, as we know, is a hub for businesspersons, which makes it a highly competitive state to start a business. It would be best if you started your businesses after a little research on whom you are competing with. Knowing your competitor’s strategies, income, expenditure, client base, customer acquisition costs, etc., will help you create a better business model for yourself. The market.
- Customer Analysis: Due to its diverse background, Gujarat, on the one hand, provides a large number of business opportunities. On the other hand, it also makes it important for you to understand your target audience. Creating a business mindlessly without paying attention to customers’ needs may have unwanted results.
We have listed for you the top 9 business ideas in Gujarat. There may be thousands more other ideas to start in the state, but these are a sure-shot success in 2022. Follow the best business practices and start your success journey today.
Some of the profitable businesses in Gujarat are gems & jewelry, dairy, textile, automobile, and pharmaceuticals.
Gujarat ranks second in India for average disposable income per household, according to the Better Life Index. This indicates that a lot of people are making purchases, which creates favorable business conditions.
Gujarat’s textile retail industry is the most profitable. The state is a global leader in textile production and is referred to as the “Manchester of the East” or the “Denim Capital of India.”
Some of the best small business ideas in Gujarat include art & craft, fertilizers & chemicals, fashion designing, garment manufacturing, petroleum jelly, printing & embroidery, and food manufacturing.
Gujarat’s primary industries include general & electrical engineering and the manufacture of textiles, vegetable oils, chemicals, soda ash, & cement, and the production of fertilizers & petrochemicals.