India’s rapid economic development, growing domestic demand, and pro-industry policies have opened up huge potential for entrepreneurs in the manufacturing sector. From food processing to chemicals, packaging to electronics, the manufacturing industry offers a wide variety of startup opportunities. If you’re looking to start a profitable venture, here are the top new manufacturing business ideas based on emerging trends, market demands, and investment feasibility—curated specially from NPCS (Niir Project Consultancy Services) July 2017 insights.

See More : Small Business Ideas

Why Choose Manufacturing as a Business?

Manufacturing businesses are crucial for India’s self-reliance and GDP growth. The “Make in India” initiative, focus on exports, infrastructure development, and import substitution are fueling demand for locally made products. Some key advantages include:

• High job creation potential

• Steady demand for essential goods

• Government subsidies and MSME incentives

• Scope for export and foreign markets

• Strong backward and forward linkages

Let’s dive into the most promising new manufacturing business ideas that align with July 2017’s market research and still remain relevant in 2025.

Top 10 New Manufacturing Business Ideas

1. Adhesives, Glues, and Resin Production

These materials are essential in industries like packaging, furniture, construction, and automotive. You can manufacture:

• White glues (PVA)

• Epoxy resins

• Synthetic adhesives for packaging

• Hot-melt adhesives

Investment: ?25–50 lakh
Demand: B2B (industrial), hardware stores, furniture manufacturers

2. Activated Carbon Manufacturing

Activated carbon is used in water purification, air filters, pharma, and cosmetics. It can be produced from coconut shells, sawdust, or coal.

Market Drivers: Water treatment demand, pollution control
Export Scope: High – Southeast Asia, Africa, Middle East
Investment: ?40–60 lakh

3. AAC Block Manufacturing (Autoclaved Aerated Concrete)

With the rise in green building solutions, AAC blocks are replacing traditional bricks. They are lightweight, eco-friendly, and thermally efficient.

Target Market: Real estate, urban infrastructure
Government Push: Sustainable construction norms
Investment: ?1.5–2 crore

4. Banana Leaf Plate Production

Biodegradable plates made from banana leaves or areca nut leaves are in high demand due to the plastic ban and eco-conscious consumers.

USP: Sustainable, low investment, village-based
Markets: Restaurants, exports, festivals, eco-hotels
Investment: ?8–15 lakh

5. Pet Bottles and Preforms Manufacturing

With increasing demand for bottled water, beverages, and oils, PET bottle and preform production is a consistent business.

Machinery Needed: Injection molding & blow molding units
Raw Materials: PET granules
Investment: ?30–70 lakh

6. Detergent Powder and Cake Manufacturing

Household cleaning products like detergents see consistent demand in both rural and urban markets.

Variants: Low-cost rural packs to premium branded detergents
Profit Margin: High in local/private labeling
Investment: ?10–25 lakh

7. Fish Feed or Cattle Feed Production

As animal husbandry and aquaculture grow in India, the demand for nutritious feed is rising. Manufacturing balanced feed for fish, poultry, or cattle offers good returns.

Target Market: Fisheries, poultry farms, dairy farms
Location Advantage: Coastal or rural areas
Investment: ?15–30 lakh

8. Disposable Syringes and IV Sets Manufacturing

A highly regulated but essential product, used in hospitals and clinics. With rising healthcare spending, this remains a fast-growing sector.

Licensing Required: Drug manufacturing license, GMP
Export Opportunity: High
Investment: ?1–3 crore (semi-automated plant)

9. Paper Cup and Paper Straw Manufacturing

With the phasing out of single-use plastic, eco-friendly paper cups and straws are in high demand by cafes, airlines, and food vendors.

Raw Material: PE-coated paper, food-grade ink
Investment: ?10–20 lakh
Automation Level: Medium

10. Herbal Cosmetics and Skincare Products

India’s Ayurveda heritage makes this a lucrative segment. You can manufacture:

• Herbal soaps and creams

• Hair oils and shampoos

• Natural face packs

Target Market: Urban youth, wellness centers, export
Raw Material Access: Abundant herbs in India
Investment: ?15–40 lakh

Emerging Trends in Manufacturing (Post-2017 to Now)

While the above list is based on the NPCS July 2017 report, here are modern trends that further support these ideas:

• Green manufacturing and biodegradable products

• Export-oriented production supported by Indian trade bodies

• Small packaging units for FMCG, supported by MSME cluster programs

• Precision tools and medical consumables after COVID-19

• Cold-pressed oil and ready-to-drink beverages

Government Schemes Supporting Manufacturing Units

To start your new manufacturing business, you can benefit from:

PMEGP (Prime Minister’s Employment Generation Programme)

• Subsidy up to 35% for rural enterprises

CLCSS (Credit Linked Capital Subsidy Scheme)

• 15% capital subsidy for upgrading technology

Udyam Registration (MSME Benefits)

• Priority lending, lower electricity tariffs, trade fair support

State Industrial Policies

• Land assistance, tax rebates, and power subsidies

See More : Detergent Business

Conclusion

The manufacturing sector in India offers sustainable income, scalability, and long-term growth. By choosing the right niche—whether it’s activated carbon, PET bottles, herbal products, or eco-friendly packaging—you can align your business with current trends and policy support.

With the insights from NPCS July 2017 and an eye on future demands, starting a new manufacturing business today could be your smartest move.