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5 Best Trading Business Ideas in India with Low Investment

Published on Sept 2, 2021Updated on Nov 28, 2023

5 Best Trading Business Ideas in India with Low Investment

Trading business ideas are a low investment and, depending on one’s skill, quite lucrative. Hence, they have been popular for a long time. Trading companies buy goods from multiple manufacturers or wholesalers and sell them to end customers or retailers. They do that by storing their own stock in a warehouse or by ordering items based on orders from customers.

Trading business ideas are flourishing today. Scroll further to know a few steps you may take if you are considering entering or expanding your trading business.

What is Trading Business?

Physical trading is the buying and selling of tangible goods such as commodities, manufactured goods, or raw materials. The idea is to turn a profit by purchasing items at a low cost and selling them at a higher cost. This type of business can be extremely competitive, and success frequently depends on spotting and capitalizing on market trends, negotiating favorable terms with suppliers, managing logistics and transportation, and developing customer connections. Physical trading enterprises can operate locally, nationally, or internationally, and can involve a variety of industries such as agriculture, energy, and consumer goods. A successful physical trading business requires effective inventory management, risk management, and financial management.

Must Read: 10 Profitable Home Business Ideas To Earn Money

Types of Trading Business

Following are the different types of trading businesses:

1. Retail Trading:

Retail trading enterprises buy and sell goods to end-users such as consumers or small businesses. Retail trading can take place in real stores or online, with products ranging from consumer goods to electronics, furniture, and clothing.

2. Wholesale Trading:

Businesses that acquire goods in quantity from manufacturers or suppliers and resell them to retailers, other wholesalers, or large organizations are known as wholesale traders. Wholesale trading can include a wide range of items, including raw materials, chemicals, and industrial equipment.

3. Import/Export Trading:

Import/export trading companies purchase items from one country and resell them in another. Knowledge of foreign trade legislation, customs, and logistics is often required for these firms.

4. Commodity Trading:

Commodity trading firms buy and sell tangible commodities such as gold, silver, oil, or agricultural products. Commodity prices can be volatile and fluctuating, making commodity trading a high-risk/high-reward enterprise.

5. Stock Trading:

Stock trading enterprises buy and sell publicly traded company stocks or shares. Stock trading techniques can include day trading, swing trading, or value investing.

Must Read: How To Start A Wholesale Business In India

Steps to Take Before Starting a Trading Business are:

If you choose trading business as your path, you need to strategize and plan well. It would be wise to have a detailed trade business plan. After you have done that, it is important to go over the below steps:

  1. Researching on competitors and the market.
  2. Select your target market  - local, domestic, international.
  3. Next, choose between an online, offline or mixed business operation model
  4. Detail out the product pricing. Ensure that you factor in all your expenses as well as the prices offered by competitors and then fix a price accordingly. 
  5. Network with product suppliers. 
  6. Create a revenue model and projections. 
  7. Work out your capital requirements as well as your operating expenses (including manpower) until the break-even point.
  8. Finally, once you have crystallized all these points, apply for the license, regulatory filings, GST number, etc. 
Must Read: Most Profitable Wholesale Business Ideas in India

Top 5 Trading Businesses to Start in India:

  1. Selling T-Shirts 
    One of the simplest ways to begin a trading business is buying and selling t-shirts. There are many manufacturing units in India that supply the best brands across the world. You can place the minimum order, choose the color, include your designs and also embed your logo. Some of these units will also assist you with packaging the t-shirts. 
    You can either store these packaged t-shirts in a small storage space or rely on marketplaces to store the t-shirts in their warehouse. You can use popular online tools to promote your brand and sell these t-shirts over renowned marketplaces.
  2. FMCG Trading
    FMCG trading is another lucrative business idea. This is an evergreen and consistently growing area which offers diverse business opportunities. You can either be a stockist, distributor, or wholesaler. To keep your costs low, you can rent out a small godown to store your items.
  3. Jewelry Trading
    Jewelry market is garnering a lot of interest. People are interested in the latest designs and they like exploring new trends. If you have a keen eye for design, you can purchase jewellery in bulk from credible jewellery suppliers. To keep your costs low, you can start the business from home itself. You do not need to stock the jewelry separately in a warehouse. 
    The market of customized jewelry in India is also picking up and growing significantly. Due to the rise in buying power, more people can afford jewelry. Your jewellery brand can be promoted extensively over online marketing platforms.
  4. Stock Market Trading
    Stock market trading business ideas are also a popular business option. You can start this business from your home. This isn’t capital intensive nor do you need storage space. However, what you will need is an expansive knowledge of the way markets function, as well as the products you will be trading in - such as equity stocks, options, futures, derivatives, currencies, commodities, etc. 
    Moreover, a knowledge of the way various industries pertaining to the financial products you will be dealing in will also be an excellent asset - such as telcom, pharma, etc. A knowledge of using tools to create data models and algorithms for trading would be a definite plus. If you don’t have the requisite skills, you may look into hiring others with the required skill sets. As a stock market trader, you would need to keep trading frequently to earn a handsome income. It is a high-risk business, so it is important to understand the way stock markets work
  5. Customized Gifts
    Gifting is something that comes to us naturally at all times. People love exploring unique gifts, customized gifts, and trendy gifts occasion after occasion. Buying power has given a huge impetus in this market. 
    Trading in customized gifts can be done online in a big way. You may require a storage space to store your inventory. You need to mainly find good suppliers and offer consistency in servicing for your product.
Must Read: 5 Tips for Women to Start a Business in India

Get a Business Loan from SMFG India Credit

SMFG India Credit business loans are here to bridge the gap that is stopping you from taking the business step of your life. SMFG India Credit business loans are completely collateral-free. There are many other special features of SMFG India Credit business loans.

SMFG India Credit provides unsecured business loans up to INR 75 lakhs* (subject to eligibility), which helps you in fulfilling your business plans easily. You can choose a flexible repayment tenure upto 48 months*. This helps you in planning your subsequent steps efficiently. 

Small business loans can even receive approval in 24 hours, subject to successful verification of business loan documents and as per SMFG India Credit’s policy at the time of loan application. 

SMFG India Credit business loan Interest rates depends on many factors like location, net income, business stability, collaterals, current monthly loans, etc.

Please note that business loans are usually granted to applicants who have a good track record of managing a business and who’s existing business has a history of stable profits for the past 2 years at least. If you need funds to start a small business from scratch and are salaried, you can consider taking a personal loan instead.

Business Loan EMI Calculator

SMFG India Credit business loan EMI calculator is an effective and easy-to-use tool. It assists you in planning your future expenses. It lets you estimate the monthly EMI for a given loan amount and interest rate by varying the repayment tenure, thereby enabling you to select a tenure so that the monthly EMI is within your budget.

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FAQs

Why is dropshipping becoming such a popular business idea?

Dropshipping is growing increasingly popular as a result of its cheap overhead expenses, flexibility, and ease of entry. There is no need for inventory management, storage, or shipping with dropshipping, making it a low-risk option for entrepreneurs. Furthermore, it enables easy scaling and the opportunity to sell things globally without physical limitations.

Which is the largest jewelry market in India?

In terms of specific cities or regions known for their jewelry markets, some of the most well-known include:

  1. Jaipur: Known as the "Pink City," Jaipur is famous for its colorful gemstone jewelry, particularly its intricate designs featuring precious and semi-precious stones.
  2. Mumbai: Often referred to as the "City of Gold," Mumbai is known for its vast wholesale and retail markets for gold jewelry.
  3. Hyderabad: Hyderabad is known for its exquisite pearl jewelry, as the city has been a major center of pearl trading for centuries.
  4. Kolkata: Kolkata has a thriving market for gold and diamond jewelry, with many shops and showrooms located in the city's central business district.
  5. Chennai: Chennai is a hub for traditional South Indian jewelry, with many shops offering ornate gold designs featuring intricate temple motifs.

Which trading business is most profitable in India?

Agriculture products are one of India's most profitable and lucrative business strategies. Cereals, pulses, spices, oilseeds, fruits, vegetables, and other agricultural products are traded. Because of India's ever-increasing population, demand for these commodities is always high in the marketplace.

Which business is most profitable in India with low investment?

Online Retailing is most profitable with low investment. With the advent of e-commerce in India, launching an online retail shop can be a lucrative and low-risk endeavor. This can include selling things on online marketplaces as well as on your own website.

What type of trading is most successful?

The type of trading that is most successful is clothing, fast-moving consumer goods, jewelry, stock market, and customized gifts. Additionally, agricultural products, online retailing, and handmade commodities are great for trading.

Which trading is best for beginners?

Beginners can work best with trading in clothes or hand-made jewelry. These are usually considered to be profitable. Else, if you are just starting out, low investment trading business ideas can be online retailing in the same way.

What are the 4 types of trades?

The 4 types of trading in India are retail trading for buying and selling goods to end users, wholesaling trading for transactions from manufacturers to retailers, import/export for international trading, and commodity trading for selling tangible products.

What is the safest form of trading?

The safest form of trading is online retailing since it requires low monetary investment in the first place. If it fails, you do not lose a major chunk of your financial savings in the process. Also, this idea is bound to become profitable.

Which strategy is best for trading?

The best strategy is to always follow a plan of action, determine your risk appetite, and get a loan before beginning the business. External financial help can protect your personal savings. Then, market your services well and control your expenses.

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