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Best 10 Small-Scale Business Ideas in Kerala

Embarking on the journey of launching a new business in Kerala? Your search ends here! This guide delves into unique “business ideas in Kerala” that could pave the way for your entrepreneurial success in this culturally rich and flourishing state.

Explore the potential business landscape in God’s Own Country, Kerala, nestled along the mesmerizing Malabar coast of India.

This culturally vibrant state, renowned for its traditions and delectable cuisine, is also making significant strides in the business world.

Kerala has now secured its place in the top performers’ category of India’s startup ecosystem, with Kochi shining as the financial and corporate capital.

If you’re a young entrepreneur contemplating your next move, the dynamic startup scene in Kerala offers a myriad of opportunities.

This guide is tailored just for you, presenting a curated list of “business ideas in Kerala” to help you navigate the exciting landscape and discover the perfect venture that aligns with the spirit of this enchanting state.

5 Reasons Why Should You Start a Business in Kerala

Embarking on the entrepreneurial journey in Kerala offers numerous advantages.

Here are five compelling reasons to consider this culturally rich state as your business haven:


KSUM’s (Kerala start-up) mission is a government policy that promotes start-ups and makes Kerala an investor-friendly state.

Kerala also permits 100% foreign ownership which makes all scale business ideas a streamline.

2. Economy of Kerala

Kerala has shown strong economic growth in past years.

It also has an abundance of skilled and semi-skilled staff, which will make the hiring process a bit easy.

3. Literacy Rate And Digital Rate

With a 100% literacy rate and 100% digital rate, it is easy to find literate employees and if you are willing to take your business online then Kerala has a wide online presence because of its 100% digital rate.

4. Low Startup Cost

In comparison to other states, Kerala has a relatively low cost of property, and rent is also cheaper.

The salaries of the employees in Kerala are also low which makes it perfect to start a new business with less investment.

5. Well Connected

Kerala has extensive railways lines which keep Kerala well connected with other states of India.

It also has numerous ports and airports.

These were the 5 reasons that make Kerala a perfect place to start a business now let us move on to the list of 10 small-scale business ideas in Kerala.

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10 Small-Scale Business Ideas in Kerala

Discovering the entrepreneurial spirit in the vibrant state of Kerala opens up a realm of possibilities.

are ten small-scale business ideas that perfectly align with the cultural and economic dynamics of this enchanting region:

1. Tourism and hotel business

Kerala is a very beautiful place, which attracts a lot of tourists from all around the world each year.

Tourism in Kerala provides 13% of the state’s GDP.

With that said tourism business in Kerala is very lucrative.

You can work as a tourist guide or open a small place for tourism-related services, you can also set up a website that provides services such as ticket booking, hotel renting, etc.

2. Lemongrass Oil

Kerala has a monopoly when it comes to the production of Lemongrass oil, 100% of lemongrass oil is produced and exported from Kerala, which makes this a very good small-scale business. 

The labor cost in Kerala is cheap, which makes this business a low investment high-return start-up.

3. Business of Banana Chips

Banana chips are the signature snacks of Kerala. Bananas are grown in abundance in Kerala and turning them into chips is a simple process.

Starting a small plant that manufactures banana chips is a very lucrative business in Kerala.

Banana chips are always in high demand and people generally prefer the Kerala manufactured banana chips.

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4. Agarbatti Making

Kerala is known as God’s own country, so what could be a better small-scale business other than agarbatti making in Kerala?

Agarbatti making requires laborers that are readily available in Kerala and that too at cheap rates.

5. Ayurveda

Kerala has its own Ayurveda therapy that tourists are fond of.

Tourism is a booming business in Kerala and no tourist leaves Kerala without their Ayurveda therapy being done.

This therapy is very relaxing and frees people from stress.

You can open an ayurvedic parlor in which a very low investment is required but it is very lucrative.

6. Coconut-Based Products

Coconut is a staple of Kerala.

You can find coconut trees everywhere in Kerala.

This also makes Kerala very famous for its coconut-based products like cookies, oil, etc.

With an abundance of coconut present in this state, you can start any small-scale factory that produces a coconut-based product and earn a fortune.

7. Beachwear

Kerala is also famous for its beaches.

Tourist comes to the beach to enjoy themselves and also for sunbathing.

Beachwear is a very popular type of clothing that is suitable for beaches.

Doesn’t matter if it is a man or a woman, everyone wants a good pair of beachwear.

You can start a beachwear store or you can also manufacture beachwear, both of them are very lucrative business ideas.

8. Sarees

Kerala is famous for Balarampuram sarees.

But they are only manufactured in Balaramuram.

You can open a store that sells this kind of sarees or you can also set up an online store if you want to expand your business worldwide.

Sarees and gold are associated with prosperity in Kerala and opening a saree store is a very lucrative business idea in Kerala.

9. Spices

India is famous for spice and so is Kerala.

Kerala’s spices are famous worldwide, Keralite pepper and cardamom are some of them.

Tourists are very interested to know what species are used in their food and they are always interested in buying them.

Both online, as well as offline spice stores, are good and profitable business ideas.

10. Home Decor Business

Kerala is famous for home decor, especially DIY.

Localises of Kerala are very professional in using things present around them and turning them into home decor.

Coconut shell bowls, wooden spoons, and wind chimes are some examples of it.

setting up an offline home decor store is a good business idea you can also take your business worldwide by setting up an online store.

These were the 10 most profitable business ideas in Kerala.

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Kerala is a very good location when it comes to start-ups and businesses.

New businesses are also given a boost in Kerala as they are supported by the government. 

Start-ups are expensive to start are certainly contain risk.

It doesn’t matter whether your start-up is small or a big one, Kerala is a perfect location for it.

The state attracts a very high volume of tourists every year which favors all business owners.

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Richard Smith

I am Richard Smith from the USA. I’m an Email Marketing Specialist. I have my own blogging site blogest.org. where people will get all Paid Campaigns and Email Marketing and blogging information. I like to encourage and motivate the new youth generation who want to learn Digital Marketing.

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