12 Trading Business Ideas in India To Help You Get Started

If you are someone who wants to break the monotony of your 9–5 job and become an entrepreneur or expand the number of verticals of your existing business but is running out of ideas, you have come to the right place.

In this article, we will discuss what trading business is and provide 12 trading business ideas to help you get started on your entrepreneurial journey in India. So, without further ado, let’s begin!

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What Is Trading Business In India?

Simply put, the word ‘trading’ means the exchange of goods and services for a monetary value. Trading businesses are involved in buying products from manufacturers or wholesalers and selling them directly to end customers or retailers.

Depending on your desired scale of operations and initial capital, you can choose to buy from single or multiple sources. Trading businesses are flexible in that way, which makes them a highly popular business model in India. Even a small trading company can have the opportunity to earn high profits.

Top 12 Trading Business Ideas In India

It’s time to brainstorm some ideas and find the one that best suits your interests.

1. Furniture

Furniture

If you’re looking for a business idea with higher returns on a smaller investment, you should definitely give furniture trading a thought. In addition to being one of the most profitable businesses, it is also one you can easily set up. All you need is a space (a shop and/or office) and some furniture (new and/or used) to get started.

If you tie up with the right manufacturers or wholesalers to keep you up with the demands and work on a good advertisement strategy, you have a successful trading business up and running!

2. Agricultural Products

Agricultural Products

Agriculture is one of the primary income-generating sectors in India. Thanks to the ever-rising population, the demand for agricultural products always keeps on increasing, making it a lucrative and potentially successful trading business idea. However, it is also quite risky since this market is highly volatile.

3. FMCG

FMCG

FMCG, especially food and beverages, is an interesting and exciting business venture option, mainly due to its diversity. You can choose your niche and scale as per the capital available to you.

Tying up with existing local vendors or setting up a small stall are the most feasible options to start your FMCG business.

4. Energy

Energy

This one might sound more complicated than it actually is. With a small investment of anywhere between 50-10 lakhs, you can set up your business related to energy. From collaborating with a local energy firm to constructing your own energy generation facility, the scope is wide. However, figuring out the logistics and getting permissions from ERC is of the utmost importance.

5. Metal

Metal

If finding a unique yet simple business idea is on your mind, trading metals is the most befitting answer. With the ever-rising industrialization, the opportunities are innumerable with this one.

The best approach is to either start a recycling plant or trade metal in partnership with other firms.

6. Clothing and Textile

Clothing and Textile

Thanks to the rise of social media, this is one of the safest and most popular business ideas. This industry never runs out of demand. You can start from anywhere, from a big textile factory and a huge clothing showroom to an online thrift store.

The scale can easily be adjusted as per the availability of capital on your end.

7. Accessories

Accessories

Just like clothing, social media has played a big part in further popularising accessories as a dependable option for a new trading business. The demand for accessories has also seen a constant rise.

If you are looking for a suitable point to start your accessories business, belts can be a good idea as they are quite popular these days.

8. Automobiles

Automobile

This one doesn’t come as cheap as the other ideas on this list. It would require a sizable investment. However, this business has the potential to earn great profits and much higher returns on investment.

This is the reason why this venture can be easily financed by some of the big players in the industry.

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9. Jewellery

Jewellery

You can effortlessly start your jewellery business at home or with a small shop set up at a prime location like local markets, malls, or hotels. But the highlight of this trading business lies in the huge revenue margins available in buying, selling, or renting out pieces of jewellery.

10. Customized Gifts

Customized Gift

Customization is a huge hit amongst youngsters these days. Everyone wants to add a personal touch to their gifts and make them their own. If you think you are creative enough or have the right resources to offer a range of customised gifts and experiences, you should definitely try this route.

11. Electronics

Electronics

This is another interesting pick if you are looking for a trading business idea with a small investment. The demand for electronic gadgets is on a constant increase in India.

You can simply start with a small shop set up for either new devices or second-hand pieces.

12. Stock Market Trading

Stock Market Trading

This is one trading business idea where you would not need to worry about logistics or storage at all. You can start your stock market trading journey at home with no minimum capital requirement to start with.

However, this is the riskiest trade option of all and should be done only when you have complete knowledge of the field.

This concludes our list of 12 trading businesses you can pursue to start your entrepreneurial journey, especially in India. 

How To Start Trading Business In India

While the mandates for starting your business will differ based on the sector and model you decide to go with, here are five steps mandatory to start any kind of trading business in India:

1. The legal incorporation of your business on the basis of the type of entity you choose to be, i.e., a sole proprietorship, partnership, company, etc.

2. Trademark or patent registration to ensure that your products, services, and/or brand name aren’t used without permission.

3. Opening a current bank account and obtaining a PAN card under the name of your business.

4. Registrations under GST and other tax laws, for both direct and indirect taxes.

5. A written business contract to establish all the terms and conditions binding all the parties and relevant stakeholders.

Now you know the legal requirements for commencing your trading business. 

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FAQs on Trading Business Ideas

Which business is best for trading?

Furniture, clothing, and FMCG are some of the best and safest options to start a business.

What type of trading is most profitable?

One of the thumb rules of business is: the higher the risk, the higher the profit. Giving in to this popular belief, stock market trading, specifically intra-day trading, is the most profitable.

How do I start a trade business?

The first and most important step to starting a business is to have a well-thought-out plan in place. This would help you understand the initial investment and potential profits your trade idea promises.

Online trading is the best for beginners. The importance of online trade has seen tremendous growth since the COVID pandemic era.

Is trading a good career?

Yes, if you want to be an entrepreneur, trading business is a good place to start.

What are the top 3 trades?

Agriculture, stock markets, and FMCG are among the top 3 industries in India right now.

Which trade is in the highest demand?

Agriculture is the most in-demand, considering the increase in demand due to the rapidly increasing population.

The dense population and a developing economy favour small businesses quite well, and it’s time you make the most of it.

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